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OMN
OMN
OMN - Omnia Holdings Limited - Trading Update
OMNIA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1967/003680/06)
JSE Code: OMN
ISIN: ZAE000005153
("Omnia" or "the Group")
Trading Update
As indicated in Omnia`s year-end results published in June, the financial year
ended 31 March 2009 was an exceptional year for the Group. The past financial
year was characterised by unprecedented market conditions, in that it reflected
neither the typical trading nor growth patterns experienced in previous years.
Commodity prices in general have substantially declined since the beginning of
the year, with the Group being significantly exposed to the rapid decrease in
prices of nitrogen, phosphate and potash, the basic ingredients of fertilizer.
The unprecedented collapse in the price of these commodities left the Group
holding substantial fertilizer stocks for its farming customers valued at
considerably higher prices than current market value. This has necessitated a
material downward adjustment to the carrying value of the stock. The drop in
commodity prices also had a negative effect on demand since farmers reduced
their orders to the minimum while prices were declining. The mining industry in
South Africa which forms an important component of the Group`s customer base was
also negatively impacted by the decline in commodity prices.
The continuing strong Rand remains one of the major impacts on financial
performance of the Group in the near term impacting negatively on each of the
three business divisions. Margins will therefore remain depressed as long as
these conditions prevail
Accordingly, shareholders are advised that, for the interim period ended 30
September 2009, the Group expects a loss of between R95 million and R105 million
or a loss per share of between 210 cents and 230 cents, after a profit of 839
cents in the prior comparative period.
Signs of economic recovery are visible. Commodities prices continue to benefit
from growing optimism about global economic trends and conditions. Our divisions
continue to optimise opportunities across various geographies and industries
whilst remaining focused on basic deliverables.
The financial results for the review period will be published on 30 November
2009.
The information upon which this trading update is based has not been reviewed or
reported on by the Group`s auditors.
Bryanston
23 October 2009
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 23/10/2009 16:22:02 Produced by the JSE SENS Department.
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