| Fri 17 Apr 2009, 14:30 | | MCU - m Cubed - Trading Statement |
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MCU
MCU
MCU - m Cubed - Trading Statement
m Cubed Holdings Limited
Incorporated in the Republic of South Africa
Registration number: 1998/014568/06
Share code: MCU & ISIN: ZAE000033353
("m Cubed" or "the group")
TRADING STATEMENT
The board of directors of m Cubed recently indicated that it intends publishing
the group`s reviewed annual preliminary financial information for the year to 29
February 2008 towards the middle of April 2009. Due to difficulties experienced
in completing the review, the board has deemed it appropriate to put forward a
trading statement in respect of m Cubed`s expected financial position at that
date. The board believes that this information will enable the shareholders to
attain a high level view of the group`s financial position. The reviewed
preliminary financial information is nearing completion and will be published
soon. Such preliminary financial information will contain the customary detail
in support of the results, as well as further cautionary notes pertaining to
unresolved regulatory matters and exposures.
Based on the information at its disposal, the board is of the opinion that -
1. The group`s net attributable loss for the year to 29 February 2008 will be
in the range between R82.9 million and R101.4 million (a net profit of
R21.2 million was recorded in the previous year); and
2. The group`s net asset value as at 29 February 2008 is expected to be
between R211.1 million and R258.1 million (the net asset value amounted to
R319.5 million as at 28 February 2007). This implies a net asset value per
share of between 28.6 cents and 34.9 cents.
As m Cubed ceased trading prior to the commencement of the financial year, the
expected net loss for the year was largely caused by expenses incurred in the
closing down of the underlying businesses, notably m Cubed Life Limited. The
following items were the main contributors to the expected net loss for the
financial year in question, and a corresponding reduction in the group`s net
asset value at year-end:
1. A settlement reached with SARS on a matter previously reported to the
shareholders, involving m Cubed Specialised Lending Services (Pty) Limited;
2. In the process of closing down m Cubed Life Limited and transferring its R7
billion of policyholder assets to PSG FutureWealth Limited subsequent to
the year-end, certain of the remaining assets had to be impaired or written
off, leaving the group in a position where its assets are tangible and
realisable;
3. Professional fees escalated during the year in question, particularly the
legal fees that were needed to regularise the contraventions included in
the settlement agreement with the regulator; and
4. Various other settlement costs involving the curators of Ovation Global
Investment Services, policyholders and other third parties.
The information contained in this trading statement has not been reviewed or
reported on by the group`s external auditors. Shareholders are advised to
continue to exercise caution in trading in m Cubed shares over the counter until
such time as the full set of audited financial results at 29 February 2008 has
been published.
17 April 2009
Stellenbosch
PSG Capital (Pty) Limited - Sponsor
Date: 17/04/2009 14:30:04 Produced by the JSE SENS Department.
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