| Mon 7 Dec 2009, 15:09 | | RAC - Racec Group Limited - Trading Update |
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RAC
RAC
RAC - Racec Group Limited - Trading Update
RACEC GROUP LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/006153/06)
Share code: RAC & ISIN: ZAE000105409
("RACEC")
TRADING UPDATE
In terms of the Listings Requirements of JSE Limited, companies are required to
publish a trading statement as soon as they become reasonably certain that the
financial results for the period to be reported on will differ by more than 20%
from that of the previous corresponding period and/or a profit forecast for the
period to be reported on.
Accordingly, a review of the financial results for the year ended 30 September
2009 by management has indicated that the loss per share is expected to be
between 11.10 and 14.10 cents and the headline loss per share is expected to be
between 10.72 and 13.92 cents compared to the earnings per share of 15.0 cents
and the headline earnings per share of 16.0 cents in the previous corresponding
period and the forecasted earnings per share and headline earnings per share of
22.2 cents for the year ended 30 September 2009, as detailed in the pre-listing
statement dated 25 September 2007.
These results can be attributed to a combination of:
- The cost of the BEE transaction entered into by RACEC and the reporting
requirements of International Financial Reporting Standards, including fair
value adjustments associated with the consolidation of Solethu Civils
Holdings (Proprietary) Limited in terms of SIC 12, as detailed in the
circular to shareholders dated 29 June 2009;
- The delay in the awarding of several significant contracts which were
expected to be awarded and commenced in the second half of this financial
year, that are now only starting in the first half of the 2010 financial
year. Despite these delays the order book remains strong;
- A significant once-off contract loss which was incurred. This contract has
subsequently been completed, and as such, the loss will not re-occur; and
- The general economic down-turn and its related impact on RACEC`s business.
Management has implemented several cost saving initiatives, the benefits of
which are expected to be realised in the 2010 financial year.
For comparative purposes with prior periods, if the impact of the consolidations
of Solethu Civils Holdings (Proprietary) Limited, as required in terms of SIC 12
is removed, the "normalised" earnings per share is expected to be between 1.29
and 1.57 cents and the "normalised" headline earnings per share is expected to
be between 1.62 and 1.98 cents.
The financial information on which this trading statement is based has not been
reviewed or reported on by RACEC`s auditors. RACEC`s financial results are
expected to be released on SENS on or about 18 December 2009.
Cape Town
7 December 2009
Designated Adviser
Merchantec Capital
Date: 07/12/2009 15:09:06 Produced by the JSE SENS Department.
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