| Fri 3 Apr 2009, 11:00 | | BAT - Brait S.A. - Trading statement for the year ended 31 March 2009 |
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BAT
BRAIT
BAT - Brait S.A. - Trading statement for the year ended 31 March 2009
Brait S.A.
Societe Anonyme
("Brait" or "the Company")
(Incorporated in Luxembourg)
Registration number: RC Luxembourg B-13861
Registered office: 180 rue des Aubepines, L-1145, Luxembourg
Share code: BAT
ISIN code: LU0011857645
TRADING STATEMENT FOR THE YEAR ENDED 31 MARCH 2009
In terms of the Listings Requirements of the JSE Limited, companies are required
to publish a trading statement as soon as they become aware that the financial
results for the period to be reported upon next will differ by at least 20% from
the financial results of the previous corresponding period.
For the year ended 31 March 2009, the Brait directors estimate the following
decreases when compared to the year ended 31 March 2008:
- Basic earnings per share by 57% to 62%
- Diluted earnings per share by 57% to 62%
- Basic headline earnings per share by 37% to 42%
- Diluted headline earnings per share by 37% to 42%
A high level summary of the estimated results for the group are shown below,
taking the midpoint within the range provided above, with the "Proforma results"
showing the prior period results adjusted for the non-recurring Bayport
realization and discontinued corporate finance business:
Unaudited Audited
12 months 12 months Proforma
31 March 31 March 31 March % change *
`09 `08 `08
Rm Rm Rm
Estimate Actual Proforma
Profit from 231 302 302 (24%)
operations
Attributable 162 393 254 (36%)
earnings
Headline 162 254 254 (36%)
earnings
*calculated on current results compared to the proforma prior period results.
Commentary
* The Group has performed below plan for the year to 31 March 2009, posting a
24% reduction in profit from operations. Whilst disappointing, this
variation from planned performance is principally explained by two items,
which together account for write-downs of approximately R175m.
** The Group has significant exposure to Net 1 UEPS.
Whilst the company continues to show strong
operational performance, the share price has fallen
from $22.55 at 30 September 2008 to $15.21 at 31
March 2009.
** The Group had various exposures to junior resource
stocks, as part of its investment programme with
Pangea. This investment programme has served the
group well over the years. However, this sector has
been negatively impacted by global events.
* The private equity portfolio has held up well, given the difficult
valuation environment. Brait`s private equity portfolio companies have, in
aggregate, shown strong improvement in operational performance, which has
provided a sound underpin to the valuation of assets at 31 March 2009.
* The Public Markets business performed materially better than last year, and
is likely to show earnings of approximately R90m for the year. This result
is due to an outstanding performance by the Capital Management Team, and
particularly the investment performance from Brait`s Multi Strategy, Matrix
Fixed Income and Ruby Equity Funds. This more than compensated for the
financial impact of the redemptions from the Brait Absolute South Africa.
Pleasingly, Brait Absolute South Africa is again delivering better
investment performance. According to the latest Alexander Forbes Fund of
Hedge Funds Manager Watch Survey, the Brait Absolute South Africa was ahead
of the median return for the most recent quarter as well as over the last
12 months.
* A higher proportion of Group profits were delivered from our South African
business than in previous years. As a result of this, there is a higher
tax charge and an increased allocation of profits to Brait`s BEE partner,
which owns 26% of Brait South Africa Limited.
* Currency movements have played their part in the Group results, where a
weaker rand against the USD has resulted in a material appreciation of the
Rand value of the Group`s USD treasury assets. Additionally, as was
reported as a subsequent event in the interim results to 30 September 2008,
a gain of R169.8m arose in October 2008 from the unwinding of the Brait
hedge of its investment in South Africa. This amount has been included in
the 31 March 2009 results as a net gain of R90.4m after taking into account
the premium on the new hedging instrument.
Management has responded to current market conditions with caution and
accordingly, cash resources have been conserved and amounted to R410m as at 31
March 2009.
The financial information on which this trading statement has been based has
not been reviewed or reported on by the Company`s auditors.
The Group will publish its results on or about 25 May 2009 at which time fuller
comment on the results will be provided.
Luxembourg
03 April 2009
Sponsor
Deloitte & Touche Sponsor Services (Pty) Limited.
Date: 03/04/2009 11:00:02 Produced by the JSE SENS Department.
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