| Mon 5 Nov 2007, 9:00 | | SKY - Sea Kay - Revised Consolidated Profit Foreca |
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SKY
SKY
SKY - Sea Kay - Revised Consolidated Profit Forecast Of Sea Kay Following
The Acquisition And Renewal Of Cautionary
SEA KAY HOLDINGS LIMITED
(formerly Pilvest CO 1 (Proprietary) Limited)
(Registration number 2006/004967/06)
JSE code: SKY
ISIN: ZAE000102380
("Sea Kay" or "the Company")
REVISED CONSOLIDATED PROFIT FORECAST OF SEA KAY FOLLOWING THE ACQUISITION
OF A FURTHER 45% PROFIT SHARE IN IBUYILE DEVELOPMENT CONSORTIUM ("IBUYILE")
AND RENEWAL OF CAUTIONARY
1. INTRODUCTION
Shareholders are referred to the results announcement dated 17 September
2007 wherein it was stated that Sea Kay would publish a revised
consolidated profit forecast for the year ending 30 June 2008 taking into
account the effect of the additional 45% share in Ibuyile ("the
acquisition").
2. REVISED CONSOLIDATED PROFIT FORECAST OF THE COMPANY FOLLOWING
THE ACQUISITION
The revised forecast consolidated income statement of Sea Kay for the
financial year ending 30 June 2008, taking into account the acquisition, is
set out below. The directors of Sea Kay are responsible for the revision
to the income statement which has been prepared on a basis which is
consistent with the accounting policies of Sea Kay.
Forecast
per the
Pre-
% Listing
change Revised Statemen
Forecas t
Year ending 30 June 2008 t
(R`000)
(R`000)
Revenue 24.50 728 146 584 846
Cost of sales 22.53 549 762 448 670
Gross profit 31.00 178 384 136 176
Operating expenses 6.48 48 735 45 769
Profit before interest and 43.40 129 649 90 407
taxation
Net interest paid 200.45 11 991 3 991
Profit before taxation 36.15 117 658 86 416
Taxation 36.15 34 121 25 060
Earnings attributable to 36.15 83 537 61 356
ordinary shareholders
Weighted average number of 471 723 471 723
shares in issue (000)
Earnings per share (cents) 36.23 17.71 13.00
Headline earnings per share 36.23 17.71 13.00
(cents)
Note:
The revised consolidated forecast income statement for the year ending 30
June 2008 is based on the profit forecast contained in the Company`s Pre-
Listing Statement, dated 8 August 2007, and includes revenue and
profitability in respect of the acquisition which was effected on 1 July
2007. The increase in net profit after taxation attributable to the
acquisition is approximately R10,5 million and the balance of R11,7 million
is due to new contracts acquired since the date of the Pre-Listing
Statement. The increase in finance cost arose mainly from the acquisition
and organic growth.
Material assumptions in respect of revenue and expenses that can be
influenced by the directors:
The assumptions utilised in the profit forecast and which are considered by
management to be significant or are key factors upon which the results of
the Company will depend are disclosed below. The assumptions disclosed are
not intended to be exhaustive. There are certain routine assumptions which
are not listed and some assumptions may not materialise. Therefore, the
actual results achieved during the forecast period may vary from the
forecast and the variations may be material.
- There will be no cancellation or significant delays on any of the
contracts currently in place.
- New tenders, which have not yet been awarded, have not been included
in the forecast.
- Existing management and trading policies will remain unchanged.
- There will be adequate working capital to fund the operating
activities
- There will be adequate capacity to complete the work without
additional expenditure
Material assumptions in respect of revenue and expenses that cannot be
influenced by the directors:
- There will be no major disruption of operations due to weather or any
other "Act of God".
- The present level of interest rates and rates of taxation will remain
substantially unchanged.
- Market and trading conditions are not expected to be materially
different during the forecast period.
- Overheads and operating costs are anticipated to grow in line with
expected inflation as per the consumer price index.
- Labour legislation will not change materially and the labour force in
general will remain stable.
- There will be no major disruption of the supply and availability of
raw materials.
3. RENEWAL OF CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcements dated 7 and 17 September 2007 and
29 October 2007, shareholders are advised that negotiations are still in
progress which, if successfully concluded, may have a material effect on
the price of the Company`s securities.
Accordingly, shareholders are advised to continue exercising caution when
dealing in the Company`s securities until a further announcement is made.
4. DOCUMENTATION
The Company`s auditors, SAB&T Inc, have issued a report on the revised
consolidated profit forecast, which report is available for inspection at
the registered office of the Company.
Johannesburg
5 November 2007
Sponsor
Ernst & Young Sponsors (Pty) Limited
Auditors
SAB&T Inc, Chartered Accountants (SA)
Attorneys
TW Ferguson
Date: 05/11/2007 09:00:06 Produced by the JSE SENS Department.
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