FGL
FGL
FGL - Finbond Group Limited - Trading Update
Finbond Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2001/015761/06)
Share code: "FGL" & ISIN: ZAE00013895
("Finbond" or "the Company")
TRADING UPDATE
In terms of the Listings Requirements of the JSE Limited companies are required
to publish a trading statement as soon as they become reasonably certain that
the financial results for the next period to be reported on will differ by more
than 20% from that of the previous corresponding period. A review of the
financial results for the six months ended 31 August 2009 by the directors of
the Company has indicated that earnings (both basic and fully diluted) are
expected to increase to between 7.8 cents and 9.6 cents per share as opposed to
8.6 cents per share for the six months ended 31 August 2009 (on a fully diluted
basis). However, Finbond expects to report a headline loss (both basic and
fully diluted) of between 7.6 cents and 9.3 cents per share as opposed to a
headline profit of 7.5 cents per share for the six months ended 31 August 2009
(on a fully diluted basis).
The deterioration of headline earnings can be attributed, inter alia, to
continued low mortgage origination volumes, a once-off accelerated intangible
asset amortisation based on the rebranding strategy of the Group in terms of
IAS38, rebranding and re-restructuring costs, a once-off loan write-off (non-
current other financial asset) and costs associated with the initial expensing
of share options as per IFRS2. Basic earnings were however bolstered by the fair
value adjustment resulting from the acquisition of investment properties as
detailed in the SENS announcement published by Finbond on 22 October 2009.
The financial information on which this trading statement is based has not been
reviewed or reported on by Finbond`s auditors. Finbond`s results for the interim
period ended 31 August 2009 are expected to be released on SENS on or about 13
November 2009.
Pretoria
27 October 2009
Date: 27/10/2009 09:58:00 Produced by the JSE SENS Department.
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