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AGI
AGI
AGI - AG Industries Limited - Trading Statement
AG INDUSTRIES LIMITED
(Incorporated in the Republic Of South Africa)
Registration Number: 1980/004051/06
Share Code: AGI
ISIN: ZAE000039467
("AGI" or "the Group")
TRADING STATEMENT
This trading statement, in respect of the results for the six months ended 31
December 2009 ("the period under review"), is published in accordance with
paragraph 3.4 (b) of the Listings Requirements of the JSE Limited.
Shareholders are advised that
1. The Group`s headline and basic loss per share is anticipated to be
between 35 cents per share ("cps") and 41 cps (2008: 8.3 cps headline
loss and 2.6 cps basic loss) for the period under review.
2. The Group`s net asset value per share is anticipated to be between 2.4
cps and 2.9 cps as at 31 December 2009 (2008: 193 cps and 30 June 2009
41 cps).
The financial information on which this trading statement is based has not
been reviewed or reported on by the Group`s auditors. AGI`s reviewed
financial results will be published on SENS on or about Tuesday, 30 March
2010.
EXPLANATION OF TRADING CIRCUMSTANCES AND RESULTS
AGI has previously reported to shareholders on the difficult position in
which the Group found itself during 2009 and the plan of action to remedy
this situation. The six month period to December 2009 was in line with the
restructuring plan from a sales, cost and working capital perspective. The
Group continued to incur losses due to the overhead cost structure that has
since been reduced as a result the restructuring. Costs of implementing the
restructuring plan were incurred during the period. The losses impacted on
the net asset value of the Group which will be improved by an increase in
equity of R205 million on completion of the rights offer in April 2010. The
restructuring plan required the sale of assets to be completed to generate
funds for the cost of restructuring.
At the time of publication of this announcement the following has been
achieved:
1. The disposal of the International Assets has been completed.
2. Approval for the disposal of the Sheerline business has been received
from disposal the competition authorities and this disposal is now
unconditional.
3. Recapitalization agreements have been finalized and a fully underwritten
rights issue process is in progress. Proceeds of R205 million will be
received in April 2010. Shareholders are referred to the various
announcements made and the circular to be posted on 23 March 2010 in
this regard.
4. Gauteng manufacturing facilities have been consolidated onto a single
site, reducing three factories into a single integrated operation.
5. A reduction of approximately 30% of the total employee numbers has taken
place as a result of restructuring activities throughout the Group.
Whilst much has been achieved, certain plans remain to be completed including
a rationalization of the Cape operations, which is currently underway.
Johannesburg
16 March 2010
Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 16/03/2010 14:48:01 Produced by the JSE SENS Department.
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