| Fri 25 Jan 2008, 8:00 | | CDZ - Cadiz Holdings Limited - Trading Statement |
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CDZ
CDZ
CDZ - Cadiz Holdings Limited - Trading Statement
CADIZ HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1997/007258/06)
JSE share code: CDZ
ISIN: ZAE000017661
("Cadiz" or "the group" or "the company")
TRADING STATEMENT
Following the strategic decision in 2006 to invest the group`s growing capital
base more efficiently to generate operational earnings, Cadiz acquired the asset
management business African Harvest. The benefits of this strategy have been
reflected in the improved operational performance of the group and the growth
trend reported in the interim results in August 2007 has continued into the
second half of the year.
In the 12 months to 31 December 2007 ("the period"), revenue from securities
showed pleasing growth, with the new businesses of transition management and
prime broking complementing the performance of the more established businesses
of equity derivatives and stockbroking.
The structuring business stabilised during the period as the group continued to
build a growing underlying annuity base, with increased deal flow in Cadiz
Corporate Solutions and greater market penetration from the retail unit, Cadiz
Wealth.
The asset management business showed strong revenue growth as a result of the
African Harvest acquisition. However, growth slowed in the second half as the
business felt the full impact of the net outflows reported at the interim
results.
The group`s cost-to-income ratio has shown a marginal increase owing to the
ongoing strategy of investing in new businesses and business processes.
Despite strong operational performance, comparative returns on the investment
portfolio have been impacted by the outflow of R296 million invested in
acquiring African Harvest and one-off gains in the 2006 financial year. These
included foreign exchange gains of R21.6 million in 2006 (relative to R2.6
million in 2007) and a profit of R18.7 million on the sale of JSE Limited shares
last year, representing a year-on-year decrease of R37.7 million before taking
into account the impact of the reduced capital base.
Consequently, the group expects diluted earnings per share ("EPS") and diluted
headline EPS for the period to be between 11% and 14% lower than the previous
financial year, while basic EPS and basic headline EPS is anticipated to be
between 14% and 17% lower.
The information contained in this trading statement has not been reviewed or
reported on by the group`s auditors.
As previously communicated to shareholders, Cadiz`s financial year end has been
changed from 31 December to 31 March. The company will release its reviewed
interim results for the 12 month period to 31 December 2007 on SENS on Monday 25
February 2008. The audited results for the 15 months to 31 March 2008 will be
announced on or about 2 June 2008.
Cape Town
25 January 2008
Sponsor
Investec Bank Limited
Date: 25/01/2008 08:00:01 Produced by the JSE SENS Department.
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