| Fri 17 Oct 2008, 11:30 | | AFT - Afrimat - Trading Statement |
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AFT
AFT
AFT - Afrimat - Trading Statement
Afrimat Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/022534/06)
Code: AFT & ISIN: ZAE000086302
("Afrimat" or "the Company")
TRADING STATEMENT
In terms of paragraph 3.4 (b) of the JSE Listings Requirements, a listed
company 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 on next will differ by at least 20%
from those of the prior comparative period.
During the period under review, Afrimat incurred significant start-up
expenses in respect of new operations ("start-up expenses") while revenue in
respect of these operations is expected to be generated only in the second
half of the year. In addition, transaction costs were incurred relating to
changes to the BEE shareholding structure ("BEE transaction costs").
Further, Afrimat also experienced weak trading conditions in the Western
Cape region during the period due to adverse winter weather conditions,
delays in municipalities authorising projects and unusually low expenditure
on infrastructure budget by provincial government.
In light of the above, the Company`s interim results for the 6 month period
ended 31 August 2008, being earnings and headline earnings per share, are
expected to be between 25% and 35% lower than the reported earnings and
headline earnings per share for the prior comparative period.
Headline earnings, after exclusion of the start-up expenses and BEE
transaction fees, reflect a lesser decline of between 10% and 20%.
The Company expects a significant improvement in performance as projects
within the Western Cape region regain momentum as anticipated. Further,
Afrimat has secured the right to supply aggregates to a number of major
large scale projects in other parts of the country, which bodes well for
growth.
The financial information on which this trading statement is based has not
been reviewed or reported on by the Company`s auditors.
The Company`s interim results will be released on or about Thursday, 30
October 2008.
Johannesburg
17 October 2008
Sponsor: Bridge Capital Advisors (Pty) Limited
Date: 17/10/2008 11:30:02 Produced by the JSE SENS Department.
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