| Thu 20 Aug 2009, 16:54 | | 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
During the financial year ending 31 August 2009 Purple Capital focused on
reducing debt through operating earnings and the disposal of non-core assets.
To that end the company:
- disposed of its 20% investment in acsis for a cash consideration of R32
million with effect from 1 April 2009, realising a profit on cost of R15,1
million but a negative fair value adjustment of R7,5 million against
carrying value. A dividend of R6,0 million was also received during the
year;
- sold its 5,3% stake in the Bond Exchange South Africa for R12,9 million,
realising a profit of R5,4 million;
- disposed of its shareholder interest in Integer for a nominal amount,
resulting in a loss of R61,1 million. Integer was unable to raise funding
in the capital markets and had become a severe cash drain. Purple Capital
has no further funding obligations to Integer as from 15 April 2009;
- sold its stake in Cape Empowerment Trust ("CET") for R9,5 million realising
a loss on cost of R12,9 million and a negative fair value adjustment of
R11,1 million for this year. As a result of this sale Shaun Rai resigned as
a director of Purple Capital and Mark Barnes resigned as a director of CET.
The proceeds from the above disposals, together with the funds from the rights
issue in October 2008 and operating earnings, were used to reduce debt with a
face value of R163,6 million at 31 August 2008 to the current face value of
R13,6 Million.
Although there has been an improvement in headline earnings in 2009,
shareholders are 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
selected unaudited disclosures detailed in the table below:
Cents
per
share
Fair value adjustments on investments (10.59)
Interest expense (4.30)
Amortisation of intangible assets (2.71)
Global Trader South Africa 2.42
Other (net of taxation and expenses) 2.51
Headline loss per share (2008 : loss of 17.4cps)* (12.67)
Basic loss per share (2008 : loss of 37.2 cps) (12.67)
Net asset value per share (2008 : 81.0cps) 40.53
*the weighted average number of shares in issue at 31 August 2009 will be 652,1
million (2008: 295,2 million)
Included in the above results are non-recurring negative fair value adjustments
of R79,6 million before tax related to investments that have been disposed of.
The interest expense is expected to reduce from R28,0 million for the 2009
financial year to approximately R4,4 million in the 2010 financial year, based
on current debt levels.
The financial information on which this trading statement is based has not been
reviewed or reported on by Purple Capital`s auditors.
The audited results for the year ended 31 August 2009 are expected to be
published on or about 23 October 2009.
Johannesburg
20 August 2009
Sponsor: KPMG Services (Pty) Ltd
Date: 20/08/2009 16:54:09 Produced by the JSE SENS Department.
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