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Retail Holdings N.V. Announces First Half 2018 Results

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Retail Holdings N.V. Announces First Half 2018 Results

PR Newswire

WILLEMSTAD, Curaçao, Aug. 13, 2018 /PRNewswire/ -- Retail Holdings N.V. (Symbol: RHDGF) -- Retail Holdings N.V. ("Retail Holdings", together with its subsidiaries and affiliates, the "Company") announced today results for the first half of 2018.

  • Consolidated revenue from continuing operations for the first six months of 2018 grew 20.7% from prior year, to $111.8 million, a record for this group of companies.     
  • All of the Company's operations reported revenue growth, with revenue in local currency increasing 26.2% in Singer Bangladesh and 16.1% in Singer India.
  • Results from operating activities from continuing operations grew to a profit of $7.3 million for the first six months of 2018, a jump of 124.0% from the first six months prior year, reflecting higher revenue, improved product margins and lower S&A expenses relative to revenue.
  • The Company's total net profit was $3.2 million for the first half of 2018, compared with a net profit of $6.0 million in the prior half year; the decline is largely a result of the divestment of Singer Sri Lanka in September 2017, which contributed $5.8 million to 2017 first half earnings, and to higher finance costs reflecting higher interest rates and additional borrowings at Singer Bangladesh.

Commenting on the 2018 first half results, Stephen H. Goodman, Retail Holdings' Chairman, President and CEO, noted, "I am pleased by the Company's strong performance during the first half of 2018, which has continued into the second half. Our operation in Bangladesh is particularly well placed to grow in both revenue and profitability as that economy continues to expand. I sincerely appreciate and thank all of our stakeholders for helping to realize these strong results and for their ongoing efforts to grow revenue and enhance profitability.

"Retail Holdings strategy remains unchanged, to maximize and ultimately to monetize the value of its assets. In pursuing this strategy, the Company realized net proceeds of $173.3 million in the 2015-2017 period from the divestitures of Sri Lanka, Thailand, and Pakistan, and from share sales in the markets in Bangladesh and India. Of this amount, approximately $93.7 is attributable to Retail Holdings shareholders.  No additional divestitures or share sales took place during the first six months in 2018.  

"In the 2016-2018 period, through the first six months of 2018, Retail Holdings' distributions to shareholders and share repurchases totaled $89.3 million. Retail Holdings shareholders will receive an additional $4.7 million in November 2018.  The Company anticipates ending 2018 with a cash balance of more than $8.0 million at Retail Holdings corporate, in addition to cash at Sewko and its operating subsidiaries.   

"The Company is currently pursuing divestment opportunities in Bangladesh and India, has resumed share sales in the market, and will seek to divest its remaining shareholding in Sri Lanka. Pending their divestment, the Company will continue to seek to grow revenue and enhance profitability at both the Bangladesh and India operations.

"Retail Holdings paid a distribution of $9.00 per Share to Shareholders of record on January 4, 2018; a further distribution of $1.00 per Share will be paid to Shareholders of record on November 1, 2018. This bring the total distributions paid to Shareholders since inception of the program in 2007 to $28.75 per Share.

"I encourage all shareholders to read the Retail Holdings complete Summary Semi-Annual Report for the period ended June 30, 2018, which is available at the Corporate/Investor Section of the Retail Holdings' website, www.retailholdings.com, or can be obtained by email, telephone or regular mail request."

About Retail Holdings

Retail Holdings N.V.is a holding company with one principal asset: a 54.1% equity interest in Sewko Holdings Limited ("Sewko"), the parent company of Singer Asia Limited, a distributor of consumer durable products through public subsidiaries in Bangladesh and India, with a residual equity interest in a similar business in Sri Lanka. Retail Holdings N.V. has no operating activities other than those carried out through Sewko/Singer Asia. Additional financial and other information about Retail Holdings N.V. may be found at the Corporate/Investor section of the Company's website: www.retailholdings.com. Price quotations for the Company's shares are available on the "Pink Sheets" quotation service under the symbol "RHDGF".

For further information, please contact Amy Pappas at 1-914-241-3404.

 

RETAIL HOLDINGS N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME 
FOR THE SIX MONTHS ENDED JUNE 30, 2018 AND 2017 (Unaudited)
In thousands of US Dollars except per Share data









June 30, 2018

 


June 30, 2017

     Restated

Continuing operations





Revenue


111,814


92,648

Cost of sales


82,193


68,268

Gross profit


29,621


24,380






Other income/(expense)


(35)


(109)

Selling and administrative expenses


(21,252)


(18,429)

External royalty


(987)


(2,562)

Results from operating activities


7,347


3,280






Finance income


172


29

Finance costs


(1,733)


(926)

Net finance costs


(1,561)


(897)






Share of profit/(loss) of equity-accounted investee, net of tax


-


181

Profit before income taxes


5,786


2,564






Income tax expense


(2,549)


(2,418)

Profit from continuing operations


3,237


146






Discontinued operations





Profit from discontinued operation, net of tax


-


5,845

Profit for the period


3,237


5,991

Attributable to:





 Owners of Retail Holdings


108


1,201

Non-controlling interests


3,129


4,790

Profit for the period


3,237


5,991






Earnings per share (US Dollars)


0.02


0.26






Earnings per share – continuing operations
 
(US Dollars)


0.02


0.03






 

 

RETAIL HOLDINGS N.V. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION 
JUNE 30, 2018 (Unaudited) AND DECEMBER 31, 2017
In thousands of US Dollars





June 30, 2018


December 31, 2017





ASSETS:





  Property, plant and equipment


18,689


19,129

  Intangible assets and goodwill


5,514


5,560

  Trade and other receivables due in excess of one year


670


608

  Employee benefits assets


5


-

  Deferred tax assets


461


387

  Other non-current assets                                                                                 


4,112


3,824

Total non-current assets


29,451


29,508






  Inventories


62,105


45,166

  Investments


10,854


10,854

  Trade and other receivables


45,393


30,857

  Current tax receivables


926


-

  Other current assets


4,909


6,101

  Cash and cash equivalents


16,856


57,325

Total current assets


141,043


150,303

Total assets                                                                  


170,494


179,811






EQUITY                                                                                     





  Share capital


53


53

Treasury Shares


(7)


(7)

  Reserves


(4,242)


(4,100)

  Retained earnings


37,522


79,256

Equity attributable to owners of Retail Holdings


33,326


75,202

Non-controlling interest


41,677


43,141

Total equity


75,003


118,343






LIABILITIES





  Loans and borrowings over one year                                                                      


31


38

  Employee benefits


-


81

  Warranty provision over one year


534


430

  Deferred tax liabilities


247


72

  Security deposits                                                                   


2,590


2,551

Total non-current liabilities


3,402


3,172






  Bank overdrafts                                                          


45,401


16,173

  Current tax liabilities


-


537

  Loans and borrowings                                                                


5,249


3,614

  Trade payables


22,597


13,223

  Other accruals and payables


17,276


23,318

  Deferred income


243


259

  Warranty provision


1,323


1,172

Total current liabilities


92,089


58,296

Total liabilities


95,491


61,468

Total equity and liabilities


170,494


179,811

 

Cision View original content:http://www.prnewswire.com/news-releases/retail-holdings-nv-announces-first-half-2018-results-300696176.html

SOURCE Retail Holdings N.V.

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