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About our Integrated Annual Report
Italtile Limited (“Italtile” or “the Company” or “the Group”) is committed to the principles of integrated reporting. Our approach to long-term value creation is aligned with these principles and we have endeavoured in this report to demonstrate how we create sustainable value for all our stakeholders.
Italtile is a leading retailer of tiles, bathroomware and related products. The Group operates as a national franchisor of its three high profile retail brands, Italtile Retail, CTM and TopT. The retail operations are underpinned by an extensive property portfolio and a vertically integrated supply chain comprising International Tap Distributors (an importer and distributor of brassware and accessories), and Cedar Point, (an importer of shower enclosures, laminated boards, cabinets, sanitaryware, décor and tiling tools). The Group holds controlling interests in both businesses. Subsequent to the reporting period the Company was granted approval by the Competition Tribunal to acquire controlling stakes in its key suppliers, tile and sanitaryware manufacturer, Ceramic Industries (Pty) Ltd and adhesives and related products manufacturer, Ezee Tile. Refer to note 37 for further information.
The Group’s Distribution Centre sources imported products and provides warehousing and distribution facilities to the retail brands.
SCOPE AND BOUNDARY
This report covers the performance of Italtile, its subsidiaries and associates for the year ended 30 June 2017. It contains a full set of Company and Group audited annual financial statements for the year ended 30 June 2017 and the King Code of Corporate Governance for South Africa, 2009 (“King III”) checklist are available on the Company’s website at www.italtile.com.
This is our primary report to stakeholders and is intended to address the interests of long-term investors and other key stakeholders including our staff, clients, regulators and communities.
This report focuses on information that is material to our business. We define material matters as those which have the ability to influence the Group’s financial results, reputation or ability to operate in the short, medium or long term.
This report provides a concise overview of the Group’s performance, prospects and ability to create value for key stakeholders on a sustainable basis. The legitimate interests of all key stakeholders are taken into account in determining information that is considered to be material for inclusion in this report.
We employ a combined assurance model to assess and assure various aspects of the Group’s business operations, including elements of external reporting.
These assurances are provided by executive management, the Board of directors of the Company (“the Board”), internal audit and independent external service providers, including Ernst & Young Inc., our external auditors.
These parties have reviewed this report and have satisfied themselves of the materiality, accuracy and balance of the disclosures.
The reporting principles and guidelines contained in the following reporting frameworks were applied and complied with in preparing this report:
- The Companies Act of South Africa;
- The Listings Requirements of the JSE Limited (“JSE Listings Requirements”);
- King III; and
- International Financial Reporting Standards (“IFRS”).
The Group consolidated financial statements contained in this report have been audited by our independent auditors, Ernst & Young Inc.
FORWARD LOOKING STATEMENTS DISCLAIMER
This report contains forward looking statements which are based on assumptions and best estimates made by management with respect to the Company’s performance in the future. Such statements are, by their nature, subject to risks and uncertainties which may result in the Company’s actual performance in future being different from that expressed or implied in any forward looking statements. These statements have not been audited by the Company’s external auditors.
The Company neither accepts any responsibility for any loss arising from the use of information contained in this report, nor undertakes to publicly update or revise any of its forward looking statements.