| Fri 6 Mar 2009, 15:44 | | PPE - Purple Capital Limited - Trading Update |
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PPE
PPE
PPE - Purple Capital Limited - Trading Update
Purple Capital Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/013637/06)
Share code: PPE & ISIN: ZAE000071411
("Purple Capital" or "the company")
TRADING UPDATE
The last six months ended 28 February 2009 has been a period of consolidation
for Purple Capital with a significant effort by the executive to transform the
group into a focused cash generative financial services group with considerably
lower debt.
To this extent the company -
- Raised R119,9 million of new capital through a fully underwritten rights
offer during October 2008; and
- Recently announced the disposal of its 20% stake in acsis Limited ("acsis")
for R32 million, which will be effective on 1 April 2009 (subject to
certain conditions precedent being met).
Highlights during the past six months:
- Global Trader, which is debt free, continues to generate strong cash flows
with an estimated EBITDA of R16,7 million for the last six months;
- the company`s investment of R7,5 million in The Bond Exchange of South
Africa during October 2008 is expected to be sold, effective 18 May 2008,
to the JSE Limited for a consideration of R12,9 million (subject to certain
conditions precedent being met); and
- the reduction of debt from R163 million at 31 August 2008 down to R73,2
million at 28 February 2009, with an anticipated further reduction down to
R11,3 million by 30 June 2009 after the disposals referred to above have
been effected.
Fair value adjustments, funding and amortisation costs:
- the current market conditions warrant fair value write downs in a number of
Purple Capital`s other investments, mainly our investment in Cape
Empowerment Trust and a write down of our investment in Integer, due to the
state of the capital markets.
- funding costs and amortisation costs (of intangible assets) are again a
notable line item in the groups results for the last six months.
Shareholders are accordingly advised that Purple Capital is expecting to declare
a basic loss, headline loss and net asset value per share within a 10% range of
the unaudited disclosures detailed in the tables below:
Cents per
share
Headline loss per share (2008 : loss of (10,37)
5,74 cps)
Basic loss per share (2008 : loss of 12,33 (10,37)
cps)
Net asset value per share (2008 : 105,51 43,3
cps)
R`
millions
Global Trader South Africa (profit after 10,2
tax)
Fair value adjustments on investments (49,2)
Amortisation of intangible assets (8,5)
Funding costs (13,4)
Other (net of total expenses) 0,1
Net loss after tax (60,8)
Net asset value after write-offs 309,6
Note: The weighted average number of shares in issue at 28 February 2009 is
586,3 million (2008 : 275,7 million). Total shares in issue at 28 February 2009
is 714,5 million (2008 : 314,8 million).
The future outlook of the group is expected to be characterised by:
- Strong cash earnings from Global Trader and Purple Capital Corporate
finance;
- Significantly reduced debt and funding costs; and
- Limited, if any, further write downs of our other investments.
We believe that the group is focused, with a stronger balance sheet, well
positioned to take advantage of future opportunities in financial services.
The financial information on which this trading statement is based has not been
reviewed or reported on by Purple Capital`s auditors.
The reviewed interim results for the 6 months ended 28 February 2009 are
expected to be published on or about 27 March 2009.
CIRCULAR TO SHAREHOLDERS - SALE OF ACSIS
Shareholders are referred to the announcement dated 3 March 2009 wherein Purple
Capital announced it has agreed principle terms to dispose of its 20% stake in
acsis to Old Mutual South Africa Limited for a cash consideration of R32 million
("the transaction") (subject to the fulfilment of certain conditions
precedent)and will be used exclusively to repay existing debt.
acsis is a leading asset consulting and financial planning business, which
through its strategic partners, serves both the private client and institutional
retirement fund markets.
Following consultation with the JSE, the transaction has been categorised as
Category 1 (in terms of the JSE listing requirements), requiring the approval of
Purple Capital shareholders in general meeting.
A circular to shareholders in accordance with the JSE Listing Requirements,
incorporating a notice to convene a general meeting of ordinary shareholders
will be posted within 28 days of this announcement.
Johannesburg
6 March 2009
Sponsor: KPMG Services (Pty) Ltd
Date: 06/03/2009 15:44:02 Produced by the JSE SENS Department.
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