INTEGRATED ANNUAL REPORT 2023
FOR THE YEAR ENDED 31 MARCH 2023
OVERVIEW | CREATING VALUE | LEADERSHIP | OPERATIONS | FINANCIAL | GOVERNANCE | SHAREHOLDER | 1 |
FOR STAKEHOLDERS | REVIEW | REVIEW | INFORMATION |
01 OVERVIEW
Review of 2023 financial year | 03 |
Introducing the Integrated Report | 04 |
02 CREATING VALUE FOR
STAKEHOLDERS
Group profile | 07 |
Value creating business model | 08 |
Strategy and targets | 09 |
Material issues and risks | 11 |
Stakeholder engagement | 15 |
Investment case | 18 |
Sustainability report | 19 |
ADDITIONAL ONLINE CONTENT
The Integrated Report is supplemented by additional financial and governance related reports which are available online at www.lewisgroup.co.za
- Annual financial statements 2023
- Five-yearfinancial review
- Corporate governance report
- Application of King lV principles
- Social, ethics and transformation committee report
- Annual general meeting*
- Notice to shareholders
- Form of proxy
* Will be issued in due course
03 LEADERSHIP | 04 REVIEWOPERATIONS |
Chairman's report | 29 | Merchandise, supply chain and stores | 37 | ||||
Managing credit risk | 40 | ||||||
Board of directors | 31 | ||||||
Chief executive officer's report | 33 | ||||||
Executive management | 35 | ||||||
00 | |||||||
Investment case | |||||||
05 | REVIEWFINANCIAL | ||||||
00 | |||||||
Sustainability report | 43 | ||||||
Chief financial officer's report | |||||||
Five-year review | 46 | ||||||
Independent00 | auditor's report | 47 | |||||
Summary consolidated financial | 47 | ||||||
Stakeholder | |||||||
statements | |||||||
engagement | |||||||
06 | GOVERNANCE | 07 | INFORMATIONSHAREHOLDER | ||||
Corporate governance report | 61 | Shareholder analysis | 77 | ||||
Shareholders' diary | 78 | ||||||
Remuneration report | 65 | ||||||
Corporate information | 78 | ||||||
LEWIS GROUP INTEGRATED ANNUAL REPORT 2023
OVERVIEW | CREATING VALUE | LEADERSHIP | OPERATIONS | FINANCIAL | GOVERNANCE | SHAREHOLDER | 2 |
FOR STAKEHOLDERS | REVIEW | REVIEW | INFORMATION |
01
OVERVIEW
REVIEW OF 2023 FINANCIAL YEAR | 03 |
INTRODUCING THE INTEGRATED REPORT | 04 |
LEWIS GROUP INTEGRATED ANNUAL REPORT 2023
OVERVIEW | CREATING VALUE | LEADERSHIP | OPERATIONS | FINANCIAL | GOVERNANCE | SHAREHOLDER | 3 |
FOR STAKEHOLDERS | REVIEW | REVIEW | INFORMATION |
REVIEW OF 2023 FINANCIAL YEAR
MERCHANDISE SALES | REVENUE | GROSS PROFIT | SATISFACTORY PAID | COLLECTION RATES | ||||||
INCREASED BY | INCREASED BY | MARGIN AT | ACCOUNTS AT | STRENGTHENED TO | ||||||
1.4% | 3.1% | 40.6% | 80.4% | 80.8% | ||||||
to R4.4 billion | to R7.5 billion | |||||||||
DEBTORS' BOOK | DEBTOR COST GROWTH | EARNINGS PER SHARE | HEADLINE EARNINGS PER | TOTAL DIVIDEND | ||||||
GROWTH OF | CONTAINED TO | DECREASED BY | SHARE INCREASED BY | MAINTAINED AT | ||||||
7.5% | 7.0% | 5.7% | 1.0% | 413 | ||||||
to 689 cents | to 857 cents | cents per share | ||||||||
LEWIS GROUP INTEGRATED ANNUAL REPORT 2023
OVERVIEW | CREATING VALUE | LEADERSHIP | OPERATIONS | FINANCIAL | GOVERNANCE | SHAREHOLDER | 4 |
FOR STAKEHOLDERS | REVIEW | REVIEW | INFORMATION |
INTRODUCING THE
INTEGRATED REPORT
We are reporting to shareholders on a year dominated by the global impact of the war in Ukraine and a stalling domestic economy under severe pressure from rising fuel, energy, food and borrowing costs, which has been compounded by the highest ever levels of electricity load shedding, all factors which have conspired to curb the country's growth prospects.
Our 2023 Integrated Report aims to demonstrate the resilient nature of the business model in the current constrained environment and how the Group has responded to the multitude of challenges to maintain and create value for our shareholders and other stakeholders.
REPORTING SCOPE AND BOUNDARY
The report covers information relating to the integrated performance and activities of the Group, which includes the main operating company, Lewis Stores (Proprietary) Limited, and its subsidiaries (the Group) for the period 1 April 2022 to 31 March 2023. The companies operate in South Africa, where 85% of the revenue is generated, as well as Namibia, Botswana, Eswatini and Lesotho.
The reportable segments are:
- Traditional retail, comprising Lewis, Best Home and Electric, and Beares
- Cash retail, comprising the United Furniture Outlets (UFO) chain
There have been no changes in the reporting scope and boundary over the past year.
The principle of materiality has again been applied in preparing the content and disclosure in this report. Materiality is determined by the board and is applied to internal and external issues that could positively or negatively affect the Group's ability to create value over time and are likely to have a material impact on strategy and performance. This excludes the disclosure of price-sensitive information or detail that could compromise the Group's competitive position.
GOVERNANCE AND COMPLIANCE
The Integrated Report reflects the Group's commitment to good corporate governance, underpinned by the reporting principles of accountability, transparency, balance and materiality.
Reporting complies with the requirements of the Companies Act and the JSE Listings Requirements while financial reporting complies with International Financial Reporting Standards (IFRS). The King Code on Corporate Governance (King lV) has been applied throughout the reporting period and the directors confirm that the Group has, in all material respects, applied the principles of King lV. The Group's application of the 16 principles of the code is outlined in the King lV Report available on www.lewisgroup.co.za.
INTEGRATED REPORTING FRAMEWORK
The guiding principles of the Integrated Reporting Framework of the IFRS Foundation have been applied in preparing this report.
The framework recommends reporting to shareholders in terms of the six capital resources applied in the creation, preservation or erosion of value which are as follows:
Financial capital relates to the financial resources received from providers of capital and deployed by the Group.
Manufactured capital is the physical infrastructure used in the selling of merchandise, including retail stores (rented and owned), online store, storerooms and the Group's head office.
Human capital focuses on the competency, capability and experience of the board, management and employees.
Intellectual capital addresses the collective knowledge and expertise in the business as well as systems, processes, intellectual property and brands.
Social and relationship capital covers stakeholder relationships and engagement, corporate reputation and values.
Natural capital deals with the environmental resources applied and utilised by the Group.
The impact of the six capitals on the Group's operations and performance is addressed in the relevant sections throughout the report and detailed in the Value creating business model on page 8.
LEWIS GROUP INTEGRATED ANNUAL REPORT 2023
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Lewis Group Limited published this content on 30 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 June 2023 09:02:03 UTC.