RCG CORPORATION LIMITED (RCG)



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General Information
Company Name: RCG Corporation Limited
Stock Code: RCG
Website: www.rcgcorp.com.au
GICS Sub-Industry: Department Stores
Market Cap ($M): 145
Equiv. Shares (M): 252

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.575 $ 0.560 $ 0.600 $ 0.557 $ 0.550 180,092 $ 0.025  4.545 %

Company Overview

Business Description:
RCG Corporation Limited (RCG) is an investment holding company which owns and operates a number of footwear businesses in the performance, comfort and active lifestyle sectors. These include The Athlete's Foot Australia and the newly acquired Shoe Superstore Group. In addition, RCG's wholesale and distribution subsidiary, RCG Brands Pty Limited is the Australian distributor for the Merrell Cushe, Chaco and CAT (Caterpillar) brands of footwear and apparel.

Strategy Analysis:
RCG employs its retail competencies and resources to improve and grow the existing business whilst diversifying risk and strengthening its operating position. These outcomes are achieved through access to capital, franchise modeling and diversification RCG Corporation reported net loss of $7,000 for the half-year ended 31 December 2012. Revenue from ordinary activities were $29.01m, up 22.2% from last year. Diluted EPS was 0.00 cents compared to 1.65 cents last year. Net operating cash flow was $1.22m compared to $2.25m last year. The interim dividend declared was 1.75 cents, compared with 1.25 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 10.5 4.1 7.9 13.9 3.4 5.8 --
2012  A 9.2 3.8 2.7 11.0 3.0 7.3 100.0
2011  A 8.9 3.7 32.1 16.6 3.0 5.0 100.0
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
David Jones (DJS) $1,279 M -0.4009 -0.0639 -0.0655 12.3132 13.1535 14.0754 0.0732 0.0692 0.0659
Myer Holdings (MYR) $1,325 M -0.1482 -0.0684 0.0195 9.5861 10.2901 10.0934 0.0837 0.0837 0.0837
RCG Corporation (RCG) $138 M 0.0356 0.0952 -- 14.5503 13.2850 -- 0.0545 0.0611 --

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
RCG -- 13.9 2.97 -- 2.73
Market 0.82 14.1 1.19 1.94 1.63
Sector 0.93 13.9 2.09 2.65 0.74

Directors
Name Position Start Date
Mr Hilton Brett Chief Executive Officer 19 December 2006
Mr Michael Cooper Executive Director 14 May 2004
Mr Michael Hirschowitz Finance Director,Company Secretary 01 July 2006
Mr Ivan Hammerschlag Non-Executive Chairman 19 October 2006
Mr David L Gordon Non-Executive Director 19 October 2006
Stephen Kulmar Non-Executive Director 14 August 2007

Substantial Shareholders
Holding Name
33,949,936 (14.01%) Hunter Hall Investment Management Limited
18,887,301 (7.79%) David Gordon and Associated entity
19,326,395 (7.98%) Ivan Hammerschlag and Associated entity
16,229,313 (6.69%) Michael Cooper
25,350,000 (10.46%) Grahger Group
14,078,013 (5.81%) TDM Asset Management Pty Ltd and its associates
14,329,313 (5.91%) Michael Hirschowitz

Calendar of Events
Date Event
20 February 2014 Report (Interim)
20 February 2014 Report (Prelim)
22 August 2013 Report (Annual)
22 August 2013 Report (Prelim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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