Cape Town - In what will probably be its last reporting period as a listed entity, furniture and appliance retailer Relyant Retail has continued its turnaround, lifting its fully diluted headline earnings per share by a whopping 140 percent to 18c.

Relyant and Ellerines are getting shareholder and regulatory approvals for their proposed merger, which was announced in May this year.

The time period for the completion of the proposed transaction was extended yesterday as a final ruling by the competition authorities is expected only in the first quarter of next year.

Relyant's revenue for the year to June was up 7.8 percent to R2.88 billion, while trading profit before depreciation and amortisation increased 46 percent to R260 million.

Allan Schlesinger, Relyant's chief executive, said that other than the buoyant trading environment, the improved performance came from a renewed focus on merchandise management and strict controls on overheads.

Net profit after tax jumped by 134.4 percent to R160.02 million.

Schlesinger said the benefit of stronger cash flows, lower interest-bearing borrowings and lower interest rates resulted in a saving of R31 million in net financing costs. Previous tax losses meant the tax rate for the year stood at a mere 3 percent.

Schlesinger added that the company still had off balance sheet tax losses of about R114 million, which would reduce future tax bills.

Net cash generated before investment activities amounted to R154 million, an improvement of R77 million over the previous year.

Interest-bearing debt was reduced from R450 million to R337 million during the period. Gearing improved to 26 percent, from 39 percent last year and

116 percent in 2002, which was before the group was recapitalised to the extent of R792 million.

The credit chain, which includes Beares, Lubners and Savells, outperformed the value retailing business by lifting its trading profit by just over 41 percent to R251.5 million.

The value division's trading profit was 28.4 percent up at R16.6 million.

This division caters for the more affluent cash markets and includes Furniture City, Glick's and Dial-a-Bed.

Shaun Bruyns, a retail analyst at RMB Asset Management, said the results were ahead of his predictions and all indications were that the company's turnaround was well on track.