TFG, the diversified retail group which now trades through 2724 outlets in 27 countries globally, continued to notch up solid growth with cash sales increasing by 19,6% to 45,6% of total turnover while its credit sales improved from 2,5% in the first half to 6,1% in the second half of the year.

The group acquired an 85% stake in Phase Eight in January this year. The acquisition has catapulted it from a 2132 store South African business, with an additional 148 stores in the rest of Africa, into a significant global player. Phase Eight is a UK based international women’s clothing and accessory business trading out of 444 outlets across the UK, Ireland and in 17 other international markets.

Another significant milestone in the past year was the disposal of TFG’s 55% share in RCS for R1,4-billion with effect from 30 June 2014.

Headline earnings per share from continuing operations (excluding the once-off acquisition costs relating to Phase Eight) increased by 9,7% to 897,9 cents.

The group announced that the final distribution would be in the form of a scrip distribution with a cash dividend alternative of 325,0 cents per share – an increase of 10,9%. Accordingly the dividend in respect of the full year amounts to 588,0 cents per share, an increase of 9,7% reflecting the growth in the underlying continuing operations. CEO of TFG Doug Murray said “Following the Phase Eight acquisition it is our intention to bring our debt equity ratio closer to our medium term target of 40%. Accordingly it is proposed that a scrip distribution with a cash dividend alternative will be offered to shareholders in the short term with the objective of increasing equity by approximately R1 billion. This will ensure that the group is well positioned to take advantage of future growth opportunities.”

He said further Africa expansion remained an important strategic objective and plans were afoot to more than double its Africa footprint to 375 stores by 2020. Its current 148 stores in Africa grew turnover by 23,9% during the year. TFG continued to grow trading space, opening 195 stores over the past year. At the year-end, TFG excluding Phase Eight was trading out of 2280 stores, an increase in trading area of 6,7%.

In addition, the group plans to increase its Phase Eight reach by adding in excess of 100 new outlets globally in the current year. TFG will also continue the rollout of its e-commerce platform, focussing especially on its Totalsports, Sportscene and Duesouth brands this year to complement the TFG Mobile and @home divisions which were launched successfully this past year.

The group – whose brands include Markham, Foschini, Fabiani, Charles and Keith, Totalsports, Exact, Donna-claire, DueSouth, Sportscene, G-Star, Fashion Express, @home, American Swiss and Sterns among others – grew cash sales for the year by 19,6% reflecting the ongoing appeal of its merchandise to customers.

The groups’ Rewards program which started a few years ago now boasts 3,6 million cash rewards customers, as well as 3,0 million credit rewards customers.

Mr Murray said all merchandise categories performed well in the past year with the clothing division increasing sales by 10,2%, cellphones up 19,2%, homewares and furniture up by 12,9% and cosmetics up 10,1%.

In the past year, its retail debtors’ book of R6,2 billion increased by 7% while the growth in net bad debt reduced to 9,4% from 39,5% in the previous year.

Net bad debt as a percentage of the closing debtors’ book increased to 13,6% from 12,4% at the previous year-end, increasing from 12,9% at the half-year, very much in keeping with management’s expectations. The retail debtors’ book is adequately provisioned at 13,6%, up from 12,3% at the previous year-end.