Truworths International, the JSE-listed investment holdings and management firm, admitted on Thursday that trading conditions were likely to remain tough for the remainder of the year.

In addition, the group said it is likely to begin to benefit from the intended acquisitions and the on-going expansion into the rest of Africa.

During October 2014, Truworths International said it had signed a letter of intent with the shareholders of Earthchild Clothing (Waterfront) to acquire 100 percent of their shares in Earthchild.

The deal was subject to certain conditions precedent and a number of these conditions have been met, including the satisfactory conclusion of a due diligence investigation and the execution of all transaction agreements.

The application for Competition Commission approval has been submitted. The effective date of the acquisition is expected to be in the first quarter of this year, subject to Competition Commission approval being granted.

Also during November 2014, Truworths International said it had entered into an agreement with ZA One (Naartjie) and its USA holding company to acquire the SA-based

Naartjie business as a going concern, together with certain trademarks, subject to certain conditions precedent.
The agreement has been formally sanctioned by the USA courts, given that the holding company is in the course of bankruptcy proceedings.

The application for Competition Commission approval has been submitted. The effective date of the acquisition is expected to be in the first quarter of this year subject to Competition Commission approval being granted.

Retail sales for the first seven weeks of the second half of the 2015 financial period surged 10 percent over those for the comparable period in 2014, it said.

The board said it remains committed to investing appropriately for longer-term growth, with trading space planned to increase approximately 6 percent for the 2015 financial period, and by approximately 5 percent in the 2016 financial period.

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