| Tue 19 Aug 2008, 17:49 | | MVG - Mvela Group Trading Statement In Respect Of The Year Ended 30 June 2008 |
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MVG MVGP
MVG
MVG - Mvela Group Trading Statement In Respect Of The Year Ended 30 June 2008
MVELAPHANDA GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1995/004153/06
Ordinary share code: MVG
Preference share code: MVGP
Ordinary share: ISIN: ZAE000060737
Preference share: ISIN: ZAE000073540
("Mvela Group" or "the Company")
MVELA GROUP TRADING STATEMENT IN RESPECT OF THE YEAR ENDED 30 JUNE 2008
In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited,
the issuer is required to publish a trading statement as soon as it is satisfied
that a reasonable degree of certainty exists that the financial results for the
period to be reported upon next will differ by at least 20% from those of the
previous corresponding period.
Shareholders are accordingly advised that:
- Mvela Group`s headline loss per share for the year ended 30 June 2008 is
expected to be between 200% and 220% lower, compared to the year ended
30 June 2007 resulting in a headline loss per share of between 305 cents
and 365 cents; and
- The loss per share for the year ended 30 June 2008 is expected to be
between 215% and 235% lower compared to the year ended 30 June 2007
resulting in a loss per share of between 322 cents and 378 cents, as a
result of fair value adjustments on its strategic investments.
- Mvela Group`s intrinsic net asset value per share is expected to decline
between 35% and 40% compared to the year ended 30 June 2007.
Mvela Group`s major investments, being Absa Group Limited ("Absa"), Life
Healthcare Group (Pty) Limited ("Life Healthcare"), Group Five Limited ("Group
Five") are accounted for at fair value and Avusa Limited ("Avusa") is equity
accounted. These investments have been adversely impacted by the downturn in the
equities market and consequently the fair value adjustment and impairment on
investments is expected to be between R1,9 billion and R2,2 billion lower for
the year ended 30 June 2008 compared to a R1,6 billion increase in the
corresponding period.
Mvela Group is confident that the underlying operations of each of its major
investments will continue to perform well over the medium to long term.
The performance of the four above-mentioned investments in their last reporting
periods is as follows:
- Absa - 18,5% growth in operating profit before income tax for the six
months ended 30 June 2008;
- Group Five - 62% growth in operating profit before fair value
adjustments for the year ended 30 June 2008;
- Life Healthcare - 20% compound growth in EBITDA over the past three
years; and
- Avusa - 10% growth in EBIT for the year ending 31 March 2008.
This trading statement has not been reviewed or reported on by Mvela Group`s
external auditors.
The company`s results are expected to be released on SENS on or about Thursday,
28 August 2008.
Sandton
19 August 2008
Enquiries
Mvelaphanda Group 011 290 4200
Ernst Roth 011 290 4230
College Hill 011 447 3030
Johannes van Niekerk 082 921 9110
Sponsor:
Deutsche Securities (SA) (Proprietary) Limited
Date: 19/08/2008 17:49:05 Produced by the JSE SENS Department.
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