CONTENTS Financial Summary Nature of Business History of Spar Management Chairman and Chief Executive's Report Administration A
FINANCIAL SUMMARY 2004 Rm Revenue Operating profit before interest and taxation Net profit for the year Headline earnings Earni
NATURE OF BUSINESS The group owns and operates six distribution centres that supply and service independently owned SPAR stores
HISTORY OF SPAR The concept of voluntary trading, uniting the efforts of both independent wholesaler and retailer, was born in
MANAGEMENT SPAR subscribes to the King II Code of Corporate Governance and has appointed a number of independent non-executive
Rodney Walter Coe (56) CA (SA) (Financial director) Date appointed to the board: 1 November 1990 Rodney Coe joined SPAR in 1984
Harish Kantilal Mehta (54) BSc, MBA (Independent non-executive director) Date appointed to the board: October 2004 Harish Mehta
SPAR has been built around four key cornerstones, which have on-going objectives attached to each one. Through continued focus
EXECUTIVE MANAGEMENT COMMITEE EXECUTIVE MANAGEMENT COMMITTEE Back Row: Enno Stelma, Bob Fenner, Bill Gordon, Brian Beavon, Bill
CHAIRMAN AND CHIEF EXECUTIVE'S REPORT The year under review was characterised by three significant issues: • • • the dramatic d
franchising to their store offerings and therefore SPAR competes for retail members as well as a share of the consumer wallet.
The Eastern Cape Distribution Centre performed at a high level of efficiency. Sales growth was affected by the loss of a few st
STORE FORMATS In keeping with changing trends at retail, store formats are continuously reviewed to focus on specific market se
The Benefits of Joining the SPAR Family From the moment a retailer becomes an independent SPAR member, a world of support, serv
improved earnings growth over 2004 is expected. On the productivity side we will again focus on training and people development
BOARD COMMITTEES Specific responsibilities have been delegated to board committees with defined terms of reference. AUDIT AND R
2005. Corporate social investment is a key focus for all the operations and the central office. To this end, specific budgets a
ADMINISTRATION Registered office: 22 Chancery Lane, Pinetown 3610 Tel: 031 719 1900 Fax: 031 719 1990 Registration number: Tran
ANNUAL FINANCIAL STATEMENTS DIRECTOR'S RESPONSIBILITY The directors of the company are responsible for the maintenance of adequ
xe We have audited the annual financial statements and the group annual financial statements of The Spar Group Limited set out
STATUTORY INFORMATION SHARE CAPITAL There were various changes to the authorised and issued share capital during the financial
HOLDING COMPANY At 30 September 2004, the company was wholly owned by Tiger Brands Limited, a company incorporated in the Repub
THE SPAR GROUP LIMITED BALANCE SHEET as at 30 September 2004 ASSETS NON-CURRENT ASSETS Property, plant and equipment Goodwill I
TOTAL EQUITY AND LIABILITES THE SPAR GROUP LIMITED INCOME STATEMENTS for the year ended 30 September 2004 2 208 101 1 776 273 2
COMPANY Share capital R’000 Non-distributable reserves R’000 1 035 (469) 566 (566) - Accumulated profit R’000 333 078 249 462 (
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of share capital Repayment of long-term borrowing Net cash outflow fro
ACCOUNTING POLICIES The annual financial statements are prepared in accordance with South African Statements of Generally Accep
1.4 INVESTMENTS IN SUBSIDIARIES Investments in subsidiaries are stated at cost less amounts written off to provide for diminuti
1.9 PROVISION FOR POST RETIREMENT MEDICAL OBLIGATIONS The projected unit credit method of valuation is used to calculate the po
Financial assets The principal financial assets are cash resources, trade receivables, investments and loans. Trade receivables
Details of land and buildings are recorded in a register which is available for inspection at the registered office of the comp
Reconciliation of net book values Freehold land and buildings Leasehold improvements furniture and office equipment Total 2003
.5. DEFERRED TAXATION ASSETS Opening balance Income statement credit (Acquisition) / sale of business Closing balance The defer
share capital to R150 000 consisting of 150 000 shares of R1.00 each; - The authorised share capital was subdivided into 250 00
Current service cost Employer benefit payments Actuarial loss 1 471 (1 353) 501 1 293 (1 159) 2005 1 471 (1 353) 501 1 293 (1 1
13. PROVISIONS Volume discounts Supplier claims Total provisions 40 183 882 29 444 940 36 699 882 37 58130 384 29 444 940 41 06
15. NET INTEREST RECEIVED 2004 R’000 INTEREST RECEIVED Interest on bank deposits Interest on investments Interest on overdue de
A profit of R20.5 million arose on the disposal of the retail division, being the proceeds of R22.6 million less the carrying a
19. HEADLINE EARNINGS RECONCILIATION Group 2004 R’000 Net profit for the year Adjusted for: Profit on disposal of property, pla
21. TAXATION PAID Balance unpaid at the beginning of the year Income statement charge Translation adjustment Business acquired
23. DISPOSAL OF THE RETAIL DIVISION (cont.) Group 2004 R’000 Inventories Trade receivables Bank balances and cash Trade payable
25. CONTINGENT LIABILITIES The company has guaranteed the finance obligations of certain SPAR members to the amount of: Group 2
27. DIRECTORS’ EMOLUMENTS Payable to directors of the company by the company: Salaries Bonuses Other benefits Total directors’
Contributions of R393 000 (2003: R279 000) and R393 000 (2003: R279 000) were expensed for the group and company respectively d
The group grants loans to new retailers to assist them with the conversion to SPAR and to existing members for the purposes of
32. INVESTMENT IN SUBSIDIARIES % Holding Name of subsidary SPAR South Africa (Pty) Ltd SPAR Namibia (Pty) Ltd* The SPAR Group (
The SPAR Group Limited Registration number: 1967/001572/06 Share code: SPP ISIN Number: ZAE000058517 (“SPAR” or “the group”) FO
Number of votes (one vote per share) RESOLUTION 1. Consideration of annual financial statements 2. Ratification / appointment o
his/her proxy is not obliged to use all the votes exercisable by him/her or by his/her proxy, but the total number of votes cas
or alternatively, voting individually on the election of the following directors: 2.1 To ratify the appointment of M J Hankinso
share held in the company by such member. Members who have dematerialised their shares, other than those members who have demat
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DEAR SHARE HOLDER We are pleased to present to you this report
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CONTENTS Financial Summary Nature of Business History of Spar M
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FINANCIAL SUMMARY 2004 Rm Revenue Operating profit before inter
Page 4:
NATURE OF BUSINESS The group owns and operates six distribution
Page 5:
HISTORY OF SPAR The concept of voluntary trading, uniting the e
Page 6:
MANAGEMENT SPAR subscribes to the King II Code of Corporate Gov
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Rodney Walter Coe (56) CA (SA) (Financial director) Date appoin
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Harish Kantilal Mehta (54) BSc, MBA (Independent non-executive
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SPAR has been built around four key cornerstones, which have on
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EXECUTIVE MANAGEMENT COMMITEE EXECUTIVE MANAGEMENT COMMITTEE Ba
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CHAIRMAN AND CHIEF EXECUTIVE'S REPORT The year under review was
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franchising to their store offerings and therefore SPAR compete
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The Eastern Cape Distribution Centre performed at a high level
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STORE FORMATS In keeping with changing trends at retail, store
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The Benefits of Joining the SPAR Family From the moment a retai
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improved earnings growth over 2004 is expected. On the producti
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BOARD COMMITTEES Specific responsibilities have been delegated
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2005. Corporate social investment is a key focus for all the op
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ADMINISTRATION Registered office: 22 Chancery Lane, Pinetown 36
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ANNUAL FINANCIAL STATEMENTS DIRECTOR'S RESPONSIBILITY The direc
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xe We have audited the annual financial statements and the grou
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STATUTORY INFORMATION SHARE CAPITAL There were various changes
Page 23:
HOLDING COMPANY At 30 September 2004, the company was wholly ow
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THE SPAR GROUP LIMITED BALANCE SHEET as at 30 September 2004 AS
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TOTAL EQUITY AND LIABILITES THE SPAR GROUP LIMITED INCOME STATE
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COMPANY Share capital R’000 Non-distributable reserves R’000 1
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CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of sha
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ACCOUNTING POLICIES The annual financial statements are prepare
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1.4 INVESTMENTS IN SUBSIDIARIES Investments in subsidiaries are
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1.9 PROVISION FOR POST RETIREMENT MEDICAL OBLIGATIONS The proje
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Financial assets The principal financial assets are cash resour
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Details of land and buildings are recorded in a register which
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Reconciliation of net book values Freehold land and buildings L
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.5. DEFERRED TAXATION ASSETS Opening balance Income statement c
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share capital to R150 000 consisting of 150 000 shares of R1.00
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Current service cost Employer benefit payments Actuarial loss 1
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13. PROVISIONS Volume discounts Supplier claims Total provision
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15. NET INTEREST RECEIVED 2004 R’000 INTEREST RECEIVED Interest
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A profit of R20.5 million arose on the disposal of the retail d
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19. HEADLINE EARNINGS RECONCILIATION Group 2004 R’000 Net profi
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21. TAXATION PAID Balance unpaid at the beginning of the year I
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23. DISPOSAL OF THE RETAIL DIVISION (cont.) Group 2004 R’000 In
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25. CONTINGENT LIABILITIES The company has guaranteed the finan
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27. DIRECTORS’ EMOLUMENTS Payable to directors of the company b
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Contributions of R393 000 (2003: R279 000) and R393 000 (2003:
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The group grants loans to new retailers to assist them with the
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32. INVESTMENT IN SUBSIDIARIES % Holding Name of subsidary SPAR
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The SPAR Group Limited Registration number: 1967/001572/06 Shar
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Number of votes (one vote per share) RESOLUTION 1. Consideratio
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his/her proxy is not obliged to use all the votes exercisable b
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or alternatively, voting individually on the election of the fo
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share held in the company by such member. Members who have dema
African Annual Reports
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