2011/02/17
WHL - Woolworths Holdings Limited - Unaudited interim group results and cash [JSE Securities Exchange - SENS]
 
WOWOW                                                                           
WHL - Woolworths Holdings Limited - Unaudited interim group results and cash    
dividend declaration for the 26 weeks ended 26 December 2010                    
WOOLWORTHS HOLDINGS LIMITED                                                     
(Incorporated in the Republic of South Africa)                                  
Registration number: 1929/001986/06                                             
Share code: WHL                                                                 
ISIN: ZAE000063863                                                              
("the company" or "the group")                                                  
UNAUDITED INTERIM GROUP RESULTS AND CASH DIVIDEND DECLARATION FOR THE 26 WEEKS  
ENDED 26 DECEMBER 2010                                                          
Highlights                                                                      
TURNOVER +9.8%                                                                  
WOOLWORTHS RETAIL RETURN ON SALES UP FROM 7.6% to 9.0%                          
PROFIT BEFORE TAX +22.1%                                                        
ADJUSTED HEADLINE EARNINGS PER SHARE +25.8%                                     
INTERIM DIVIDEND PER SHARE +32.9%                                               
Commentary                                                                      
Group results                                                                   
Turnover growth of 9.8% combined with good margin improvement in Woolworths     
Retail, effective cost control across the group and a significant improvement in
the impairment charge in Woolworths Financial Services resulted in profit before
tax growth of 22.1%.                                                            
The effective tax rate increased from 29.9% to 32.9%, primarily as a result of  
STC on distributions.                                                           
Adjusted headline earnings per share increased by 25.8% to 100.8 cents per      
share.                                                                          
An interim ordinary dividend of 50.5 cents per share has been declared.         
The group's balance sheet remains strong and inventory was well managed during  
the period. Shareholders' return on equity increased from 42.4% to 43.3%.       
Woolworths Retail                                                               
Food sales were up 11.8% for the period. Comparable stores increased by 9.1%.   
Price movement was 3% for the period. Return on sales grew from 3.8% to 5.3%.   
Gross profit margins improved from 23.1% to 24.2% and profit before tax grew by 
54.6%.                                                                          
Clothing sales (including Country Road in South Africa) were 11.5% up for the   
period. Overall clothing and general merchandise grew by 8.1% and was lower than
clothing growth due in part to the decision to rationalise the unprofitable     
cellphone handset business. Price movement was 1.4%. Market share gains measured
on both a 3 month moving average basis and a 12 month moving average basis were 
achieved.                                                                       
Costs were well controlled, with store costs growing by only 7% on a like-for-  
like basis and other operating costs by 8.2% on a normalised basis.             
Total footage increased by 3.1% in corporate stores (2.8% clothing and general  
merchandise and 3.7% food). Trading densities in both food and clothing and     
general merchandise were improved in the period.                                
Country Road                                                                    
Country Road grew turnover by 3.7% (including the South African operations) in  
Australian dollars. Australia experienced a tough retail environment and        
comparable stores declined by 9.9% in that market. The difficult conditions were
anticipated and significant cost saving initiatives were implemented during the 
period to off-set this. As a result, profit before tax grew 8.3% in Australian  
dollars.                                                                        
Woolworths Financial Services                                                   
There was good growth in the group's share of profit from the joint venture due 
to significantly lower levels of bad debts and the restructured insurance       
business. The impairment charge as a percentage of average gross receivables was
1.6% (December 2009: 6.2%) indicating real improvement in the quality of the    
debt. The size of the debtors' book, however, remained at the same level as the 
prior year.                                                                     
Outlook                                                                         
In South Africa trading for the first seven weeks has been positive and our     
expectations are that turnover growth for the year will be broadly in line with 
the first half.                                                                 
In Australia we expect the tough trading conditions to remain and do not        
anticipate sales to show a material improvement on prior period.                
Shareholders are advised that the information contained in the Outlook section  
above has not been reviewed and reported on by the group's external auditors and
it does not constitute an earnings forecast.                                    
DA Hawton         I Moir                                                        
Chairman          Group chief executive officer                                 
Cape Town, 16 February 2011                                                     
Changes to the board of directors                                               
Two long serving non-executive directors, Brian Frost and Nigel Colne, retired  
at the company's annual general meeting on 18 November 2010. On the same date   
Simon Susman was appointed a non-executive director and Deputy chairman and Ian 
Moir was appointed Group chief executive officer. Tom Boardman and Sir Stuart   
Rose were appointed non-executive directors on 27 September 2010 and on 19      
January 2011 respectively.                                                      
Dividend declaration                                                            
Notice is hereby given that the directors have declared an interim cash dividend
of 50.5 cents per ordinary share for the twenty-six weeks to 26 December 2010   
(38.0 cents cash distribution per ordinary share for the same period 2009).     
The salient dates for the dividend will be as follows:                          
Last day to trade to receive a dividend                                         
Friday, 4 March 2011                                                            
Shares commence trading "ex" dividend                                           
Monday, 7 March 2011                                                            
Record date                                                                     
Friday, 11 March 2011                                                           
Payment date                                                                    
Monday, 14 March 2011                                                           
Share certificates may not be dematerialised or rematerialised between Monday,  
7 March 2011 and Friday, 11 March 2011, both days inclusive.                    
In accordance with the company's articles of association, dividends amounting to
less than R5.00 due to any one holder of the company's ordinary shares held in  
certificated form will not be paid, unless otherwise requested in writing, but  
will be aggregated with other such amounts and be donated to a charity nominated
by the directors.                                                               
An interim cash dividend of 16.8 cents per preference share for the twenty-six  
weeks to 26 December 2010 (8.7 cents per preference share for the same period   
2009) will be paid to the beneficiaries of the Woolworths Employee Share        
Ownership Scheme on Monday, 14 March 2011.                                      
CL Lowe                                                                         
Group secretary                                                                 
Cape Town, 16 February 2011                                                     
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                  
                                                       52 weeks                 
                                                      to 27 Jun                 
                                                           2010                 
                                                             Rm    Notes        
Revenue                                                   23 663                
Turnover                                                  23 393                
Cost of sales                                             15 656                
Gross profit                                               7 737      3.1       
Other revenue                                                 95                
Expenses                                                   6 178                
Store costs                                                3 940                
Other operating costs                                      2 238                
Operating profit                                           1 654                
Investment income                                            175      3.1       
Interest paid                                                151                
Profit before earnings from joint ventures and associate   1 678                
Earnings from joint ventures                                  75                
Earnings from associate                                        6                
Profit before tax                                          1 759                
Tax                                                          491        4       
Profit after tax                                           1 268                
Other comprehensive income:                                                     
Net fair value adjustments on financial instruments, after                      
tax                                                           40                
Exchange differences on translation of foreign subsidiaries   13                
Other comprehensive income for the period, net of tax         53                
Total comprehensive income for the period                  1 321                
Profit attributable to:                                    1 268                
Shareholders of the parent                                 1 258                
Non-controlling interest                                      10                
Total comprehensive income attributable to:                1 321                
Shareholders of the parent                                 1 304                
Non-controlling interest                                      17                
Reconciliation of headline earnings                                             
Earnings attributable to shareholders of the parent        1 258                
BEE preference dividend paid                                  11                
Basic earnings                                             1 247                
Loss on disposal of property, plant and equipment             24                
Tax impact of adjustments                                    (7)                
Headline earnings                                          1 264                
Abnormal foreign exchange related gain                      (57)                
Adjusted headline earnings                                 1 207                
Headline earnings per share (cents)                        164.6                
Earnings per share (cents)                                 162.4        5       
Adjusted headline earnings per share (cents)               157.2                
Diluted headline earnings per share (cents)                159.3                
Diluted earnings per share (cents)                         157.2        5       
Adjusted diluted headline earnings per share (cents)       152.2                
Number of shares in issue (millions)                       759.5                
Weighted average number of shares in issue (millions)      768.0                
                                           26 weeks      26 weeks               
                                          to 26 Dec     to 27 Dec               
                                               2010          2009           %   
                                                 Rm            Rm      change   
Revenue                                       12 797        11 696         9.4  
Turnover                                      12 687        11 550         9.8  
Cost of sales                                  8 327         7 706         8.1  
Gross profit                                   4 360         3 844        13.4  
Other revenue                                     46            60      (23.3)  
Expenses                                       3 304         2 989        10.5  
Store costs                                    2 166         1 945        11.4  
Other operating costs                          1 138         1 044         9.0  
Operating profit                               1 102           915        20.4  
Investment income                                 64            86      (25.6)  
Interest paid                                     64            75      (14.7)  
Profit before earnings from joint                                      ventures 
and associate                         1 102           926        19.0           
Earnings from joint ventures                      65            27        >100  
Earnings from associate                            -             3     (100.0)  
Profit before tax                              1 167           956        22.1  
Tax                                              384           286        34.3  
Profit after tax                                 783           670        16.9  
Other comprehensive income:                                                     
Net fair value adjustments on                                                   
financial instruments, after tax                (46)           (3)        >100  
Exchange differences on                                                         
translation of foreign subsidiaries              (6)            17              
Other comprehensive income for                                                  
the period, net of tax                          (52)            14              
Total comprehensive income for the period        731           684         6.9  
Profit attributable to:                          783           670        16.9  
Shareholders of the parent                       775           662        17.1  
Non-controlling interest                           8             8           -  
Total comprehensive income attributable to:      731           684         6.9  
Shareholders of the parent                       731           674         8.5  
Non-controlling interest                           -            10     (100.0)  
Reconciliation of headline earnings                                             
Earnings attributable to shareholders                                           
of the parent                                    775           662        17.1  
BEE preference dividend paid                      11             7        57.1  
Basic earnings                                   764           655        16.6  
Loss on disposal of property,                                                   
plant and equipment                                1             8      (87.5)  
Tax impact of adjustments                          -           (2)     (100.0)  
Headline earnings                                765           661        15.7  
Abnormal foreign exchange related gain             -          (42)     (100.0)  
Adjusted headline earnings                       765           619        23.6  
Headline earnings per share (cents)            100.8          85.4        18.0  
Earnings per share (cents)                     100.6          84.7        18.8  
Adjusted headline earnings per                                                  
share (cents)                                  100.8          80.1        25.8  
Diluted headline earnings per                                                   
share (cents)                                   96.6          83.4        15.8  
Diluted earnings per share (cents)              96.5          82.7        16.7  
Adjusted diluted headline                                                       
earnings per share (cents)                      96.6          78.2        23.5  
Number of shares in issue (millions)           761.7         764.2       (0.3)  
Weighted average number of                                                      
shares in issue (millions)                     759.3         773.6       (1.8)  
CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                    
                                                                           At   
                                                                       27 Jun   
                                                                         2010   
ASSETS                                                                      Rm  
Non-current assets                                                       3 633  
Property, plant and equipment                                            1 991  
Investment properties                                                      121  
Intangible assets                                                          392  
Investment in associate                                                     40  
Investment in joint ventures                                               574  
Prepaid employment costs                                                    29  
Participation in export partnerships                                        63  
Other loans                                                                 95  
Derivative financial instruments                                             1  
Deferred tax                                                               327  
Current assets                                                           5 377  
Inventories                                                              1 676  
Trade and other receivables                                                759  
Derivative financial instruments                                            19  
Tax                                                                          6  
Cash                                                                     2 917  
Total assets                                                             9 010  
EQUITY AND LIABILITIES                                                          
Capital and reserves                                                     3 453  
Interest of shareholders of the parent                                   3 396  
Non-controlling interest                                                    57  
Non-current liabilities                                                  1 362  
Interest-bearing borrowings                                                521  
Operating lease accrual                                                    447  
Derivative financial instruments                                            15  
Post-retirement medical benefit liability                                  292  
Deferred tax                                                                87  
Current liabilities                                                      4 195  
Trade and other payables                                                 2 608  
Provisions                                                                 248  
Derivative financial instruments                                            20  
Tax                                                                        285  
Interest-bearing borrowings                                              1 034  
Total equity and liabilities                                             9 010  
Net asset book value - per share (cents)                                   447  
GROUP ANALYSIS                                                        Restated  
Total assets                                                             9 010  
Woolworths Retail                                                        5 145  
Country Road                                                               850  
Treasury                                                                 2 442  
Woolworths Financial Services                                              573  
Inventories                                                              1 676  
Woolworths Retail                                                        1 354  
Country Road                                                               322  
Approved commitment for capital expenditure                                786  
Woolworths Retail                                                          652  
Country Road                                                               134  
                                                              At           At   
                                                          26 Dec       27 Dec   
                                                            2010         2009   
ASSETS                                           Notes         Rm           Rm  
Non-current assets                                          3 679        3 532  
Property, plant and equipment                        6      2 020        1 989  
Investment properties                                         121          121  
Intangible assets                                    6        440          367  
Investment in associate                                        39           37  
Investment in joint ventures                                  589          541  
Prepaid employment costs                                       23           33  
Participation in export partnerships                           61           65  
Other loans                                                    85          125  
Derivative financial instruments                                -            -  
Deferred tax                                                  301          254  
Current assets                                              5 073        5 301  
Inventories                                                 1 837        1 814  
Trade and other receivables                                   812          910  
Derivative financial instruments                                1            3  
Tax                                                            10            1  
Cash                                                        2 413        2 573  
Total assets                                                8 752        8 833  
EQUITY AND LIABILITIES                                                          
Capital and reserves                                        3 726        3 168  
Interest of shareholders of the parent                      3 669        3 116  
Non-controlling interest                                       57           52  
Non-current liabilities                                     1 300        1 340  
Interest-bearing borrowings                                   511          528  
Operating lease accrual                                       461          465  
Derivative financial instruments                                1           17  
Post-retirement medical benefit liability                     303          283  
Deferred tax                                                   24           47  
Current liabilities                                         3 726        4 325  
Trade and other payables                                    3 012        2 753  
Provisions                                                    248          219  
Derivative financial instruments                              118           26  
Tax                                                           328          321  
Interest-bearing borrowings                                    20        1 006  
Total equity and liabilities                                8 752        8 833  
Net asset book value - per share (cents)                      482          408  
GROUP ANALYSIS                                                        Restated  
Total assets                                                8 752        8 833  
Woolworths Retail                                           5 322        5 163  
Country Road                                                1 038          971  
Treasury                                                    1 804        2 159  
Woolworths Financial Services                                 588          540  
Inventories                                                 1 837        1 814  
Woolworths Retail                                           1 514        1 476  
Country Road                                                  323          338  
Approved commitment for capital expenditure                   399          400  
Woolworths Retail                                             373          397  
Country Road                                                   26            3  
CONSOLIDATED STATEMENT OF CASH FLOWS                                            
                                                                     52 weeks   
                                                                    to 27 Jun   
                                                                         2010   
                                                                           Rm   
Cash flow from operating activities                                             
Cash inflow from trading                                                 2 220  
Working capital movements                                                  215  
Cash generated by operating activities                                   2 435  
Interest received                                                          167  
Finance costs paid                                                       (152)  
Tax paid                                                                 (367)  
Cash generated by operations                                             2 083  
Dividends received from associate                                            1  
Dividends received from WFS                                                 35  
Distributions to shareholders                                            (725)  
Net cash inflow from operating activities                                1 394  
Cash flow from investing activities                                             
Net investment in PPE and intangible assets                              (543)  
Other                                                                       29  
Net cash outflow from investing activities                               (514)  
Cash flow from financing activities                                             
Shares issued                                                               47  
Repurchase of treasury shares                                            (410)  
Share repurchase costs                                                     (1)  
Payment of finance lease liabilities                                      (20)  
Short-term borrowings (repaid)/raised                                       20  
Net cash outflow from financing activities                               (364)  
(Decrease)/increase in cash and cash equivalents                           516  
Cash and cash equivalents at the beginning of the period                 2 391  
Effect of foreign exchange rate changes                                     10  
Cash and cash equivalents at the end of the period                       2 917  
GROUP ANALYSIS                                                        Restated  
Cash inflow from trading                                                 2 220  
Woolworths Retail                                                        1 996  
Country Road                                                               224  
Gross capital expenditure                                                  607  
Woolworths Retail                                                          460  
Country Road                                                               147  
                                                       26 weeks      26 weeks   
                                                      to 26 Dec     to 27 Dec   
                                                           2010          2009   
                                                             Rm            Rm   
Cash flow from operating activities                                             
Cash inflow from trading                                   1 443         1 062  
Working capital movements                                    223           108  
Cash generated by operating activities                     1 666         1 170  
Interest received                                             64            82  
Finance costs paid                                          (74)          (80)  
Tax paid                                                   (384)         (111)  
Cash generated by operations                               1 272         1 061  
Dividends received from associate                              1             1  
Dividends received from WFS                                   50            20  
Distributions to shareholders                              (523)         (427)  
Net cash inflow from operating activities                    800           655  
Cash flow from investing activities                                             
Net investment in PPE and intangible assets                (303)         (309)  
Other                                                         18             5  
Net cash outflow from investing activities                 (285)         (304)  
Cash flow from financing activities                                             
Shares issued                                                 28            18  
Repurchase of treasury shares                               (21)         (220)  
Share repurchase costs                                         -           (1)  
Payment of finance lease liabilities                         (8)           (6)  
Short-term borrowings (repaid)/raised                    (1 000)             -  
Net cash outflow from financing activities               (1 001)         (209)  
(Decrease)/increase in cash and cash equivalents           (486)           142  
Cash and cash equivalents at the beginning of the                               
period                                                     2 917         2 391  
Effect of foreign exchange rate changes                     (18)            40  
Cash and cash equivalents at the end of the period         2 413         2 573  
GROUP ANALYSIS                                                        Restated  
Cash inflow from trading                                   1 443         1 062  
Woolworths Retail                                          1 306           941  
Country Road                                                 137           121  
Gross capital expenditure                                    310           316  
Woolworths Retail                                            264           225  
Country Road                                                  46            91  
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                     
                                                  52 weeks            Share-    
                                                 to 27 Jun        holders of    
                                                      2010        the parent    
                                                        Rm  Notes         Rm    
Interest at the beginning of the period               3 072             3 396   
Movements for the period:                                                       
Issue of shares                                          47      8         28   
Shares repurchased                                    (410)      8       (21)   
Share repurchase costs                                  (1)                 -   
Distributions to shareholders                         (725)             (523)   
Share-based payments                                    149                58   
Total comprehensive income for the period             1 321               731   
Interest at the end of the period                     3 453             3 669   
Distribution per ordinary share (cents)                                         
- ordinary                                            105.0                     
Distribution cover (based on adjusted                   1.5                     
headline earnings per share)                                                    
Distribution per preference share (cents)              30.8                     
                                                          Total         Total   
                                             Non-      26 weeks      26 weeks   
                                      controlling     to 26 Dec     to 26 Dec   
                                         interest          2010          2009   
                                               Rm            Rm            Rm   
Interest at the                                                                 
beginning of the period                         57         3 453         3 072  
Movements for the period:                                                       
Issue of shares                                  -            28            18  
Shares repurchased                               -          (21)         (220)  
Share repurchase costs                           -             -           (1)  
Distributions to shareholders                              (523)         (427)  
Share-based payments                             -            58            42  
Total comprehensive income for the period        -           731           684  
Interest at the end of the period               57         3 726         3 168  
Distribution per ordinary share (cents)                                         
- ordinary                                                  50.5          38.0  
Distribution cover                                                              
(based on adjusted                                                              
headline earnings per share)                                 2.0           2.1  
Distribution per preference share (cents)                   16.8           8.7  
SEGMENTAL ANALYSIS                                                              
The results of Country Road South Africa, previously recorded in the C&GM       
segment, have been included in the Country Road segment in line with a change in
operational structure. Comparative results have been restated.                  
The following is an analysis of the group's revenue and operating results by    
reportable segment:                                                             
                                                       Restated                 
                                                       52 weeks                 
                                                      to 27 Jun                 
                                                           2010                 
                                                             Rm       Notes     
Revenue                                                                         
Turnover                                                  23 393                
Woolworths Retail                                         20 557                
Clothing and General Merchandise                           7 913         3.2    
Food                                                      12 227                
Logistics                                                    417                
Country Road                                               2 836         3.2    
Other revenue and investment income                          270                
Woolworths Retail                                             86                
Clothing and General Merchandise                              21                
Food                                                          65                
Country Road                                                  25         3.2    
Treasury                                                     175                
Intra-group revenue                                         (16)         3.2    
Total group                                               23 663                
Gross profit                                                                    
Woolworths Retail                                          6 156                
Clothing and General Merchandise                           3 162         3.2    
Abnormal foreign exchange related gain                        79                
Food                                                       2 838                
Intra-group rental                                            77                
Country Road                                               1 581         3.2    
Total group                                                7 737                
Profit before tax                                                               
Woolworths Retail                                          1 514                
Clothing and General Merchandise                             990         3.2    
Abnormal foreign exchange related gain                        79                
Food                                                         445                
Country Road                                                 142         3.2    
Woolworths Financial Services                                 75                
Treasury                                                      28                
Total group                                                 1 759               
                                                        Restated                
                                          26 weeks      26 weeks                
                                         to 26 Dec     to 27 Dec                
                                              2010          2009          %     
                                                Rm            Rm     change     
Revenue                                                                         
Turnover                                     12 687        11 550        9.8    
Woolworths Retail                            11 155        10 099       10.5    
Clothing and General Merchandise              4 282         3 961        8.1    
Food                                          6 635         5 937       11.8    
Logistics                                       238           201       18.4    
Country Road                                  1 532         1 451        5.6    
Other revenue and investment income             110           146     (24.7)    
Woolworths Retail                                41            52     (21.2)    
Clothing and General Merchandise                  8            16     (50.0)    
Food                                             33            36      (8.3)    
Country Road                                      5            16     (68.8)    
Treasury                                         64            86     (25.6)    
Intra-group revenue                               -           (8)    (100.0)    
Total group                                  12 797        11 696        9.4    
Gross profit Woolworths Retail                3 487         3 014       15.7    
Clothing and General Merchandise              1 839         1 550       18.6    
Abnormal foreign exchange related gain            -            58    (100.0)    
Food                                          1 606         1 373       17.0    
Intra-group rental                               42            33       27.3    
Country Road                                    873           830        5.2    
Total group                                   4 360         3 844       13.4    
Profit before tax                                                               
Woolworths Retail                             1 008           831       21.3    
Clothing and General Merchandise                657           546       20.3    
Abnormal foreign exchange related gain            -            58    (100.0)    
Food                                            351           227       54.6    
Country Road                                     92            86        7.0    
Woolworths Financial Services                    65            27       >100    
Treasury                                          2            12     (83.3)    
Total group                                   1 167           956       22.1    
NOTES                                                                           
1 Basis of preparation                                                          
The abridged group financial statements are prepared in accordance with         
International Financial Reporting Standards and the presentation and disclosure 
requirements of IAS 34 Interim Financial Reporting. These abridged financial    
statements do not contain all the information required in the annual financial  
statements.                                                                     
2 Significant accounting policies                                               
The accounting policies applied are consistent with those followed in the       
preparation of the consolidated annual financial statements for the period ended
27 June 2010, except for the adoption of the following IFRS, IFRIC              
interpretations, amendments and circulars that became effective during the      
current period. These changes had no significant impact on the reported results 
other than giving rise to additional disclosures and a revision to the relevant 
accounting policies:                                                            
- IFRS 2 Amendments - Share-based Payment: Group Share-based Payment            
Transactions                                                                    
3 Reclassification of comparative figures                                       
3.1 Income received relating to investment activities has been separately       
disclosed from other revenue and is excluded from operating profit.             
3.2 The results, cash flows and net assets of Country Road South Africa,        
previously recorded in the C&GM segment, have been included in the Country Road 
segment in line with a change in operational structure.                         
4 Tax                                                                           
The effective tax rate of 32.9% (2009: 29.9%) is higher than the standard rate  
of normal tax mainly due to STC and the non-deductible IFRS 2 charge arising    
from the group's BEE employee share ownership and executive share incentive     
schemes.                                                                        
5 Earnings per share                                                            
The difference between earnings per share and diluted earnings per share is due 
to the impact of outstanding options under the group share incentive schemes and
preference shares issued in terms of the BEE employee share ownership scheme.   
6 Property, plant and equipment and intangible assets                           
During the twenty-six weeks to 26 December 2010, the group acquired property,   
plant and equipment at a cost of R212m (2009: R266m) and acquired intangible    
assets at a cost of R98m (2009: R50m).                                          
7 Goodwill                                                                  Rm  
Balance at the beginning of the period - at cost                            23  
Additions                                                                   36  
Balance at the end of the period - at cost                                  59  
There has been no impairment for the period.                                    
8 Issue and repurchase of shares                                                
During the twenty-six weeks to 26 December 2010, 3 500 331 (2009: 2 496 007)    
ordinary shares were issued in terms of the group's executive share incentive   
scheme. 445 986 (2009: 11 878 892) shares were repurchased from the market by E-
Com (Proprietary) Limited and 851 827 (2009: 1 814 000) shares were repurchased 
from the market by Woolworths (Proprietary) Limited. These shares are held as   
treasury shares by the group.                                                   
No shares (2009: 29 497 604) shares were issued to Woolworths (Proprietary)     
Limited and held as treasury shares.                                            
9 Contingent liabilities                                                        
Various group companies are parties to legal disputes and investigations which  
have arisen in the ordinary course of business. Whilst the outcome of some of   
these matters cannot readily be foreseen, the directors do not expect the       
outcomes to have a material financial effect.                                   
10 Borrowing facilities                                                         
Unutilised committed banking facilities amount to R500m (2009: R1 600m). There  
is no limit in the articles of association on the group's authority to raise    
interest-bearing debt.                                                          
During the period the group repaid short-term interest-bearing borrowings of R1 
000m.                                                                           
11 Acquisition of franchise operations                                          
On 2 September 2010, the group announced its decision to wind down its South    
African franchise operations and made offers to purchase all local franchise    
stores. These offers expire on 26 June 2011.                                    
In line with this decision, the group re-acquired franchise stores for a cash   
consideration of R48m. Subsequent to the reporting date, final contracts and    
heads of agreement have been reached for the re-acquisition of additional       
stores.                                                                         
Assets acquired at the date of acquisition                                  Rm  
Non-current assets                                                              
Property, plant and equipment                                                2  
Re-acquired rights                                                          10  
                                                                           12   
Goodwill arising on acquisition                                                 
Consideration transferred                                                   48  
Less: fair value of identifiable net assets acquired                        12  
                                                                           36   
Goodwill arose on the acquisition of franchise stores, related to the value of  
the business in excess of the value directly attributable to the remaining      
period of the franchise contracts.                                              
These acquisitions had no impact on the results of the group for the current    
period.                                                                         
Had the acquisition of the acquired franchisees been effected at the beginning  
of the period, the revenue of the group for the 26 weeks ended 26 December 2010 
would have been R21m higher, and the profit after tax for the period would have 
increased by R3m. The directors of the group consider these pro forma numbers to
represent an approximate measure of the performance of the combined group on a  
half-yearly basis and to provide a reference point for comparison in future     
periods.                                                                        
12 Related party transactions                                                   
The group entered into related party transactions during the period. Information
regarding the related parties is included in the annual financial statements.   
13 Events subsequent to the reporting date                                      
No event material to the understanding of these financial statements has        
occurred between the end of the financial period and the date of approval, that 
have not been disclosed. See also note 11 with regards to acquisitions of       
franchise stores.                                                               
14 Approval of annual financial statements                                      
The interim financial statements were approved by the board of directors on  16 
February 2011.                                                                  
15 Unaudited results                                                            
These results have not been reviewed or audited.                                
Directorate and statutory information                                           
Non-executive directors:                                                        
Buddy Hawton (Chairman), Simon Susman (Deputy chairman), Peter Bacon (British), 
Tom Boardman, Lindiwe Bakoro, Mike Leeming, Chris Nissen,        Sir Stuart Rose
(British), Thina Siwendu, Sindi Zilwa                                           
Executive directors:                                                            
Ian Moir (Group CEO) (Australian), Zyda Rylands, Norman Thomson                 
Group secretary:                                                                
Cherrie Lowe                                                                    
Share code: WHL        ISIN: ZAE000063863                                       
Registered address:                                                             
PO Box 680, Cape Town 8000                                                      
Woolworths House, 93 Longmarket Street, Cape Town 8001                          
Registration number:                                                            
1929/001986/06                                                                  
JSE sponsor:                                                                    
Rand Merchant Bank (A division of FirstRand Bank Limited)                       
Transfer secretaries:                                                           
Computershare Investor Services (Pty) Limited                                   
70 Marshall Street, Johannesburg 2001                                           
visit our investor relations site: www.woolworthsholdings.co.za                 
Date: 17/02/2011 07:05:01 Produced by the JSE SENS Department.                  
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employees and agents accept no liability for (or in respect of) any direct,     
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howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          
Source: JSE Securities Exchange - SENS
 
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