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Retail Holdings N.V. Announces Strong 2016 Results, Confirms $2.00 Per Share Distribution And Further Stock Repurchases

WILLEMSTAD, Curaçao, March 28, 2017 /PRNewswire/ -- Retail Holdings N.V. (RHDGF) -- Retail Holdings N.V. (the "Company"), announced today strong results for the year ended December 31, 2016. Financial highlights include:

  • Consolidated revenue from continuing operations was $489.1 million, an increase of 16.9% from prior year, a new record for this group of companies. Revenue at the Company's operations in Bangladesh grew 29.4% from prior year as measured in U.S. Dollars. Revenue in India increased 18.1% and revenue in Sri Lanka increased 12.8%. Revenue growth in local currency was even stronger, increasing 30.3%, 23.7% and 21.1% in Bangladesh, India and Sri Lanka, respectively.
  • Results from operating activities were a profit of $42.9 million, an increase of 26.0% from prior year, largely reflecting the flow through of the growth in revenue and lower S&A expenses relative to income.
  • Net proceeds of $22.6 million were realized in 2016 from the sale of shares in the Company's operations in Bangladesh, Pakistan and Sri Lanka; this is in addition to $46.3 million realized from divestitures in 2015.
  • The Company's after tax profit from continuing operations was $16.3 million in 2016, compared to a loss from continuing operations, net of tax, of $12.2 million in the same period in 2015. The increase in profit of $28.5 million reflects both the absence of any meaningful impairment charge in 2016 (a material impairment loss had been recognized in 2015) and the flow through of the improved results from operating activities, coupled with a lower effective tax rate.
  • During 2016 the Company paid a distribution to shareholders of $5.00 per Share and repurchased from shareholders 542,782 shares

The Company's Board of Directors also confirmed an initial 2017 distribution of $2.00 per Share to be paid in the spring of 2017 with the likelihood of paying a further distribution later in 2017, bringing total distributions since the inception of the Company's dividend/distribution program in 2007 to at least $17.75 per Share. The Board of Directors also announced that the Company would continue to opportunistically repurchase shares as justified by market conditions.

Chairman's Comments

Commenting on the 2016 results, Stephen H. Goodman, the Company's Chairman, President and CEO, noted, "I am extremely pleased by the Company's very strong financial performance, with double digit percentage growth both in consolidated revenue and in revenue at each of the Company's operations. I am also pleased by the further progress made during the year in the Company's strategic program to monetize and return to shareholders the underlying value of the Company's remaining assets.

"I am optimistic about the prospects for 2017, in terms of both financial performance - - the individual operations are all off to a very good start - - and likely further progress in our strategic divestment program. Public market sales of additional shares are either already underway or planned in Bangladesh, India and Sri Lanka; the initial results from this effort should be disclosed in the next several weeks. Additional asset sales are planned for later in the year.

"The Company intends to pay an initial distribution of $2.00 per Share in the spring, with a further distribution anticipated later in 2017, to be determined, in large part, by the amount of proceeds from this year's divestments.

"I encourage all shareholders to read the 2016 Summary Annual Report and the Audited Consolidated Financial Statement and Notes, which will be available in the next several days at the Corporate/Investor section of the Retail Holdings website: www.retailholdings.com, and can be obtained free of charge by email, telephone or regular mail request to the Company.

"I extend my sincere thanks to my fellow employees and directors for their considerable effort in making 2016 a success, and thank all of the Company shareholders for their continued support."

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 subsidiaries in Bangladesh, India and Sri Lanka, with consumer credit and other financial services available to qualified customers. 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 Retail Holding's website: www.retailholdings.com. Price quotations for Retail Holdings 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


CONSOLIDATED STATEMENT OF INCOME

FOR THE YEAR ENDED 31 DECEMBER

In thousands of U.S. Dollars





2016


2015
Restated*

Continuing operations












Revenue



489,085


418,476

Cost of sales



(341,652)


(292,341)

Gross profit



147,433


126,135







Other income



2,969


3,428

Selling and administrative expenses



(101,906)


(89,593)

Other expenses



(5,578)


(5,896)

Results from operating activities



42,918


34,073







Impairment loss on SVP Notes



-


(23,840)







Finance income



844


807

Finance costs



(17,123)


(13,491)

Net finance costs



(16,279)


(12,684)







Share of loss of equity-accounted investee, net of tax



(345)


(177)

Profit / (Loss) before tax



26,294


(2,628)







Tax expense



(9,992)


(9,550)

Profit / (Loss) from continuing operations



16,302


(12,178)







Discontinued operations






(Loss) / profit from discontinued operations, net of tax



(1,225)


24,141

Profit for the year



15,077


11,963







Attributable to:






      Owners of the Company



4,148


(8,314)

      Non-controlling interests



10,929


20,277

Profit for the year



15,077


11,963







Earnings / (Loss) per share (U.S. Dollars)






      Basic earnings / (loss) per share



0.81


(1.57)

      Diluted earnings / (loss) per share



0.81


(1.57)







Earnings / (Loss) per share – Continuing operations 
          
(U.S. Dollars)






      Basic earnings / (loss) per share



0.94


(3.86)

      Diluted earnings / (loss) per share



0.94


(3.86)







*Restated to include the Cambodian operation as discontinued.

 

 

RETAIL HOLDINGS N.V. AND SUBSIDIARIES


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In thousands of U.S. Dollars



31 December
2016


31 December
2015

ASSETS




     Property, plant and equipment

50,319


44,392

     Intangible assets and goodwill

7,563


7,622

     Trade and other receivables

44,256


46,442

     Equity-accounted investee

3,622


2,200

     Deferred tax assets

1,853


2,116

     Other non-current assets

9,219


9,463

Total non-current assets

116,832


112,235





Inventories

98,077


74,332

Trade and other receivables

142,125


109,462

Other current assets

12,261


11,388

Cash and cash equivalents

17,527


61,598

Assets held for sale

-


22,379

Total current assets

269,990


279,159

Total assets

386,822


391,394





EQUITY




     Share capital

53


53

     Treasury shares

(7)


-

     Share premium

3,618


37,655

     Reserves

(6,411)


(7,229)

     Retained earnings

51,921


44,165

Total equity attributable to owners of the Company

49,174


74,644

Non-controlling interest

70,910


89,605

Total equity

120,084


164,249





LIABILITIES




     Loans and borrowings

58,936


61,820

     Employee benefits

5,754


6,366

     Deferred income

709


571

     Warranty provision

308


254

     Deferred tax liabilities

968


781

     Other non-current liabilities

9,148


7,611

Total non-current liabilities

75,823


77,403





Bank overdrafts

16,549


6,279

Current tax liabilities

2,106


3,935

Loans and borrowings

97,959


59,942

Trade and other payables

69,465


55,537

 Deferred income

3,130


2,474

Warranty provision

1,706


1,521

Liabilities held for sale

-


20,054

Total current liabilities

190,915


149,742

Total liabilities

266,738


227,145

Total equity and liabilities

386,822


391,394

 

INFORMATION CONTACT
Amy Pappas at (914) 241-3404

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