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DEL
DEL
DEL - Delta Electrical Industries Limited - Further Trading Update
Delta Electrical Industries Limited
Incorporated in the Republic of South Africa
(Registration number 1919/006020/06)
Share code: DEL & ISIN: ZAE000002036
("Delta")
Further Trading update
Delta shareholders are referred to the trading update which was released on SENS
on 18 December 2007. This advised shareholders that a further trading update
would be released once the impairment and closure costs associated with the
cessation of production at the Delta EMD Australia plant were estimated with
reasonable certainty. Provisions have now been made for these costs based on
reasonable estimates.
Shareholders are advised that a loss before taxation of between R212 million and
R233 million (2006: R62 million) and headline loss before taxation of between
R139 million and R153 million (2006: R127.4 million) is expected for the twelve
months ended 27 December 2007.
Shareholders are also advised that a loss per share of between 399 cents and 441
cents (2006: 309.9 cents) and headline loss per share of between 284 cents and
313 cents (2006: 259.5 cents) is expected for the twelve months ended 27
December 2007.
The impairment and closure provisions taken during 2007 in respect of the
Australian plant total R187.6 million (383 cents per share) which include the
impairment of plant assets, redundancy payments and estimated restoration and
rehabilitation costs associated with the main plant and residue disposal site.
The value of the land at the plant and residue disposal site have not been
adjusted and remain at book value due to the uncertainties associated with
realisable value once restored and rehabilitated. The disposal of the land could
result in a profit in future periods.
The operating and administration costs to be incurred during production,
decommissioning and liquidation of the Australian plant assets have not been
provided for and will be expensed during the 2008 year. The contribution from
the sale of the Australian stock on hand during 2008 is expected to cover these
expenses and result in a profit.
Following the decommissioning of the Australian plant, the sale of the plant
assets and land is expected to be complete within two years. Opportunities for
accelerating the disposal of these assets, reducing the estimated restoration
and rehabilitation costs and realising gains on the sale of the assets and land
are being pursued. The liquidation proceeds are expected to fund the costs to be
incurred in decommissioning the plant, undertaking the required restoration and
rehabilitation of land and disposing of the assets and land.
Cash balances at year end 27 December 2007 were in excess of R200 million.
This trading update has not been reviewed by Delta`s auditors and Delta`s
results for the twelve months ended 27 December 2007 are due to be released on
or about 21 February 2008.
Johannesburg
15 February 2008
Sponsor
Nedbank Capital
Date: 15/02/2008 09:35:01 Produced by the JSE SENS Department.
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