| Tue 21 Oct 2008, 9:00 | | OMN - Omnia Holdings Limited - Trading update |
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OMN
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OMN - Omnia Holdings Limited - Trading update
Omnia Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1967/003680/06)
JSE code: OMN
ISIN: ZAE000005153
("Omnia" or "the Group" or "the company")
TRADING UPDATE - Omnia Holdings Limited
Diversified specialist chemical services company Omnia is a leading provider of
customised solutions in the chemicals, mining and agriculture markets.
As communicated at the full year results for the year ended 31 March 2008, Omnia
is ideally poised to benefit from unprecedented market conditions in all three
of its divisions. Accordingly, Omnia expects an increase in headline and basic
earnings of between 270% and 290% for the 6 months ended 30 September 2008
compared with the same period last year.
Shareholders are also advised that headline and basic earnings per share for the
6 months ended 30 September 2008 are likewise expected to be between 270% and
290% greater than the headline and basic earnings of 224,5 cents and 220,3 cents
per share respectively for the 6 months ended 30 September 2007.
The Chemicals and Mining divisions will show sterling results with considerably
improved margins. Omnia Fertilizer also improved its performance on the previous
year.
Omnia anticipates a reduction in the debt : equity ratio to between 50% and 70%,
not withstanding that this is the traditional peak of the company`s working
capital cycle, compared with the debt : equity ratio of 86% recorded on 30
September 2007. This reduction is despite ongoing and large increases in raw
material prices.
The reduction in debt has been driven by early purchasing of fertilizer products
as customers reduced their exposure to continuing increases in international
fertilizer prices.
The financial information on which this trading update is based has not been
reviewed and/or reported on by the company`s auditors. It is anticipated that
Omnia`s results for the six months ended 30 September 2008 will be published on
or about 28 November 2008.
Mining and Agricultural markets drive demand for new Omnia Nitric Acid plant
In line with Omnia`s strategic focus of pursuing new growth opportunities, both
nationally and internationally, Omnia`s board has decided to complete a detailed
study to erect a second nitric acid plant and expand nitrate production capacity
at its Sasolburg facilities. This new facility will address the growing demand
for products in our Agricultural and Mining regional markets, and will reduce
Omnia`s dependence on third parties, and in particular on urea imports.
Johannesburg
21 October 2008
Sponsor: Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 21/10/2008 09:00:12 Produced by the JSE SENS Department.
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