BCH
BCH
BCH - Best Cut - Trading update
BEST CUT LIMITED
(previously Integrear Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1989/001319/06)
JSE code: BCH & ISIN: ZAE000105391
("Best Cut" or "the group")
Trading Statement
In accordance with paragraph 3.4(b) of the Listings requirements of the JSE
Limited, shareholders are advised that earnings and headline earnings per share
are expected to be between 60% and 80% lower than the profit forecast issued in
the revised listings particulars dated 4 October 2007.
This decrease in earnings and headline earnings per share can be attributed to a
significant increase in costs of raw materials in the industry, which the Group
was unable to pass on to the market due to market resistance to price increases
and the fact that the Groups` planned geographic expansion is taking longer than
anticipated.
Factors specifically impacting the Groups` performance are;
- production in the abattoir came on line later than anticipated. The
abattoir was forecast to make a reasonable contribution to the Group`s
profits which did not materialize.
- the economic downturn had a negative effect on sales volumes.
- the proposed expansion into Gauteng and Mpumalanga although underway, is
progressing slower than planned due to market trading conditions.
The Group is confident that the market will improve and is focused on
establishing a national footprint from which it will be able to increase brand
awareness and expand sales volumes thereby increasing its market share.
The financial information on which this trading statement is based has not been
audited by the company`s auditors. The results for the financial year ended 30
June 2008 are expected to be released on Tuesday the 30th of September.
23 September 2008
Designated Adviser
Vunani Corporate Finance
Date: 23/09/2008 16:44:33 Produced by the JSE SENS Department.
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