VLE - Value Group Limited - Revised Trading Update
VLE
VLE
VLE - Value Group Limited - Revised Trading Update
Value Group Limited
(Incorporated in the Republic of South Africa)
Registration Number: 1997/002203/06
Share code: VLE
ISIN code: ZAE000016507
("Value" or "the company")
REVISED TRADING UPDATE
A trading update was published on 23 January 2007 wherein it was reported
that headline and basic earnings per share for the year ended 28 February
2007 would be 40% to 60% less than that achieved in the previous
corresponding period.
During the last eight months, increased and varied volumes and associated
changes to customer distribution patterns necessitated additional
investment in infrastructure costs. Consequently, these costs were not
reflected and recovered in the existing rates structures and therefore had
a material impact on margins. In addition, as highlighted in the interim
report, interest rate hikes, smoothing of lease costs, the volatile diesel
price and the implementation of a new IT system had an adverse effect on
the company`s cost base. Lastly, in February 2007, an illegal strike was
embarked upon by labour broker drivers and crew at the Group`s new
distribution facility. This resulted in materially worse than expected
earnings for the month. Accordingly, shareholders are advised that
headline and basic earnings per share for the current financial year ending
28 February 2007 have been revised and will be 60% to 80% less than that of
the previous corresponding period. Management is in the process of
reviewing and addressing all costs and distribution rates to counteract the
effect of the above and return the company to previous profitability
levels. The results publication will provide further clarity.
The financial results on which this revised trading update has been based,
have not been reviewed nor reported on by Value`s auditors. The results
for the year ended 28 February 2007 will be published on or about the 30
May 2007.
Johannesburg
25 May 2007
Sponsor: Investec Limited
Date: 28/05/2007 08:15:02 Produced by the JSE SENS Department.
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