| Mon 4 May 2009, 15:41 | | DEL - Delta - Trading Statement Declaration Of Special Dividend And Salient |
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DEL
DEL
DEL - Delta - Trading Statement, Declaration Of Special Dividend And Salient
Dates For Change Of Name
Delta Electrical Industries Limited
Incorporated in the Republic of South Africa
(Registration number 1919/006020/06)
Share code: DEL ISIN: ZAE000002036
("Delta" or "the Company" or "the Group")
TRADING STATEMENT, DECLARATION OF SPECIAL DIVIDEND AND SALIENT DATES FOR
CHANGE OF NAME
Delta shareholders are referred to the Group`s 2008 Annual Report, including
the Change of Name circular included therein and the Chairman`s Review dated
25 February 2009.
The Group is pleased to advise shareholders that the Group`s year-to-date
trading performance has been very good and the Group`s profit after taxation
for the six month ended 27 June 2009 is now forecast to be a considerable
improvement over the six months ended 27 June 2008.
The Group`s market position remains as expected following resolution of
several anti-dumping investigations, and in the ordinary course is expected to
provide good but less than optimal sales volumes for the Group`s South African
plant. Additional sales volumes have been realised early this year with a
change in terms of sale and the resulting transfer of ownership of stocks held
in overseas warehouses. Sales revenue also has been enhanced by the selling
price increases implemented in January 2009, which have offset the under-
recovery of overheads associated with reduced production and higher input
costs.
The Group`s trading profit continues to benefit from the selling price
increases implemented during April 2008 and is forecast to reflect reduced
overhead costs following the closure of the Group`s Australian plant and
restructuring of management resource.
Profit and headline profit after taxation for the six months ending 27 June
2009, inclusive of the secondary taxation on companies payable in respect of
the special dividend payable in June 2009, are forecast to be between R54
million and R68 million (2008: Profit after taxation of R39.1 million and
headline profit after taxation of R36.1 million). Earnings and headline
earnings per share for the six months ending 27 June 2009 are forecast to be
between 110 cents and 139 cents (2008: Earnings per share of 79.7 cents and
headline earnings per shares of 73.5 cents).
The Group`s continued profitability is particularly welcome following a
difficult five year period (2004-2008) during which the Group`s accumulated
losses after taxation exceeded R275 million. Current performance provides an
acceptable return on capital employed and over time would afford recovery of
these accumulated losses.
The Group is also pleased to announce a special dividend of 200 cents per
share, which will be paid from cash accumulated from operating activities.
The salient dates for the payment of the special dividend, together with the
dates for the change of name which was proposed in the circular to
shareholders incorporated in the Annual Report, dated 6 March 2009 and which
was approved by shareholders at the Annual General Meeting dated 30 April 2009
will be as follows:
Last day to trade under the old name "Delta Friday, 15 May 2009
Trade under the new name "Delta EMD Monday, 18 May 2009
Limited", share code "DTS" and ISIN number:
ZAE000132817 from commencement of trading on
Record date for change of name Friday, 22 May 2000
Last date to trade to qualify Friday, 22 May 2009
for the special dividend
Shares to commence trading ex- Monday, 25 May 2009
Special dividend on the JSE Limited
New share certificates reflecting the change Monday, 25 May 2009
of name posted by registered post to
certificated shareholders who have
surrendered their documents of title on or
before the close of business on the record
date (see note 4)or within 5 days of
surrender thereof
Dematerialised shareholders` safe custody Monday, 25 May 2009
accounts updated with the name change by
their CSDP/broker
Record date for special dividend Friday, 29 May 2009
Payment date of special dividend Monday, 1 June 2009
Notes:
1. The dividend is declared in the currency of the Republic of South Africa.
2. For purposes of the special dividend, share certificates may not be
dematerialised or rematerialised between Monday, 25 May 2009 and Friday,
29 May 2009, both days inclusive.
3. For purposes of the change of name, shareholders will not be able to
dematerialise or rematerialise securities in the name of Delta Electrical
Industries Limited after Friday, 15 May 2009.
4. For purposes of the change of name, certificated shareholders who
surrender their existing documents of title after the record date, will
have their new share certificates mailed within 5 business days of
receipt thereof by the transfer secretaries, by registered post in South
Africa, at the risk of the shareholder concerned.
5. The dates and times for purposes of the change of name are subject to the
change of name special resolution being registered with CIPRO. A
finalisation announcement or any such amendment will be published on SENS
no later than 8 May 2009.
Following payment of the special dividend during May, the Group is expected to
retain cash balances in excess of R250 million. The board anticipates payment
of further special dividends if and when the cost of rehabilitating the
Kooragang Island residue disposal facility is determined to be less than the
amount currently provided, when the 2005 tax query is favourably resolved and
when value is realised through the sale of the Group`s Australian EMD
production site and Kooragang Island residue disposal facility.
The board also anticipates payment of regular dividends following release of
the Group`s interim results.
Prospects for sales volumes and market selling prices are expected to provide
trading during the second half in line with the first half. Recent manganese
ore cost decreases will not significantly benefit margins because of
unfavourable exchange rate movements and Delta EMD`s longer term ore supply
arrangements.
The forecast financial information on which this trading statement is based
has not been reviewed and reported on by the Group`s auditors. Delta`s results
for the six months ending 27 June 2009 are expected to be released on SENS
during August 2009.
Johannesburg
4 May 2009
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 04/05/2009 15:41:02 Produced by the JSE SENS Department.
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