- CORPORATE
REVIEW 
- OPERATIONAL
REVIEW - GOVERNANCE AND
SUSTAINABILITY - ANNUAL FINANCIAL
STATEMENTS- Independent auditor's report
- Company secretary's certificate
- Directors' report
- Balance sheets
- Income statements
- Statements of changes in equity
- Cash flow statements
- Notes to the annual financial
statements - Subsidiary and other information
- Annexure A - Segmental reporting
- Annexure B - Shareholders' diary 2007/8
- Notice of annual general meeting
- Corporate information
- Form of proxy
Operational Review
Rob Jordan
BCom (UCT)
Dipl Management (London), ABSI
Divisional Managing Director
Jordan & Co
Profile
Jordan & Co was established in 1899 and supplies men’s, ladies’ and children’s fashion and
sports footwear to the South African market. Sales are of branded products (“Bronx”,
“Jordan”, “Asics”, “Olympic”, “Sperry”, “Keds”, “Steve Madden” and “Phatfarm”) across
the retail spectrum as well as house brands for various large retail chains.
Footwear is both imported and manufactured at the division’s factory in Cape Town, with slow-moving and residual product being disposed of through a small chain of factory shops. Jordan is a long-term supplier of footwear to the state and parastatal organisations.
Period under review
The first twelve months of the 2006 calendar year were characterised by 17% growth in volumes, 21% growth in revenue and a satisfactory increase in operating profits.
The manufacturing operation, while constantly under price pressure, managed to retain its volumes. Good growth was experienced in sales of imported products, including the international brands of Asics and Keds. Growth was also experienced in sales to chains of their house brands, albeit at lower margins.
Significant investment has been made to upgrade showroom and design facilities, and the division’s management information systems are in the process of major enhancement.
Results were cushioned by hedging imports. Stockholdings of imported products increased by 20%, with commensurate increases in credit from suppliers.
The first six months of the 2007 calendar year are traditionally difficult, with peak demand being in the second six months of the calendar year. The growth in the ladies’ division and the acquisition of the rights to the Steve Madden international brand are encouraging for the longer term.
Prospects
Order flow for summer 2007 is strong compared to 2006 and steady further growth is expected from our new ventures. The Asics sports brand is performing well, regularly featuring at major events both in South Africa and overseas.