| Fri 20 Mar 2009, 16:57 | | VUN - Vunani - Trading Statement And Renewal Of Cautionary Announcement |
|
VUN
VUN
VUN - Vunani - Trading Statement And Renewal Of Cautionary Announcement
VUNANI LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/020641/06)
JSE code: VUN
ISIN: ZAE000110359
("Vunani" or "the company")
TRADING STATEMENT AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
Background
Vunani is a black-owned and managed financial services company that operates
through two divisions, namely Financial Services and Investment Services.
Financial Services comprises the asset management, investment banking and
property business units. The Investment Services division houses Vunani`s
strategic empowerment equity investments ("the investments").
An economic downturn in key sectors in which Vunani has investments was
experienced during the period under review, and as a consequence, the market
value of those investments declined materially.
It is expected that the profit after tax generated by the core Financial
Services division (asset management, investment banking and property business
units) in respect of the year ended 31 December 2008 will be in line with the
previous financial year. However, the Investment Services division will reflect
material unrealised negative fair value adjustments due to the substantial
decline in the "small-to-mid cap market". The underlying nature of the
investments will remain core to the company`s portfolio.
Trading statement
In terms of the Listings Requirements of the JSE Limited, companies are required
to publish a trading statement as soon as they are satisfied that a reasonable
degree of certainty exists that the financial results for the period to be
reported on will differ by at least 20% or more from the financial results for
the previous corresponding period.
Vunani is currently finalising its results for the year ended 31 December 2008
and expects a loss per share of between 57.3 cents and 70.0 cents and a headline
loss per share of between 52.0 cents and 63.5 cents, compared to earnings per
share and headline earnings per share of 41.4 and 28.0 cents, respectively,
reported for the year ended 31 December 2007. The reduction in earnings is as a
result of fair value adjustments against the investments.
The financial information on which this trading statement is based has not been
reviewed or reported on by the company`s auditors.
Debt restructuring
The substantial decline in the share prices and valuation of the investments in
Investment Services has resulted in certain debt covenant ratios, as set by the
providers of debt, being breached. Vunani has entered into negotiations with
its banking partners in order to resolve these breaches and is of the reasonable
opinion that the negotiations will be successful.
Renewal of cautionary announcement
Shareholders are referred to the cautionary announcement, dated 12 March 2009,
and are advised that the negotiations relating to the debt restructuring may
have a material effect on the price of the company`s securities, if successfully
concluded. Accordingly, shareholders are advised to continue to exercise
caution when dealing in the company`s securities until a further announcement is
made.
The company`s results for the year ended 31 December 2008 are expected to be
released on SENS on or before 31 March 2009.
Johannesburg
20 March 2009
Lead Designated Adviser
Merchantec (Proprietary) Limited
Joint Designated Adviser
Vunani Corporate Finance
Date: 20/03/2009 16:57:29 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
