MPC - Mr Price Group - Termination of export partnerships and voluntary
MPC
MPC
MPC - Mr Price Group - Termination of export partnerships and voluntary
trading statement
Mr Price Group Limited
Registration number 1933/004418/06
Incorporated in the Republic of South Africa
ISIN: ZAE000026951
JSE share code: MPC
("the company")
TERMINATION OF EXPORT PARTNERSHIPS AND VOLUNTARY TRADING STATEMENT
In compliance with the JSE Limited Listings Requirements, the following
information is disclosed:
As referred to in previous annual financial statements and results
announcements, the company has been exploring the potential of unbundling the
export partnership structures in which it has been involved and has now
successfully concluded its negotiations with all relevant parties. The
unbundling provides certainty with regard to collection risks and eliminates
exposure to future changes in the rates of tax, interest and exchange rates.
The unbundling of the export partnerships has the effect of removing the
`carrying value of contributions to export partnerships` and the associated
deferred tax liability from the company`s balance sheet, and has resulted in
an impairment of R59m which will be reflected in the company`s income
statement for the year ended 31 March 2010. The company will no longer
reflect amounts historically included in the income statement as `net
adjustment to carrying value of contributions to export partnerships`.
This impairment will not affect growth in core headline earnings per share,
which is expected to be between 15% and 20%. After accounting for the once
off impairment, growth in headline earnings per share is expected to be
between 5% and 10%. As this impairment is once-off in nature and does not
affect cash reserves at 31 March 2010, dividends will not be affected.
The forecast financial information contained in the above trading statement
has not been reviewed or reported on by the company`s auditors.
Durban
31 March 2010
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 31/03/2010 14:00:01 Produced by the JSE SENS Department.
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