|
WEA
WEA
WEA - W G Wearne Limited - Correction to the trading statement
W G Wearne Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005983/06)
JSE code: WEA ISIN: ZAE000078002
("Wearne" or "the company")
CORRECTION TO THE TRADING STATEMENT
Shareholders are referred to the trading statement dated 17 May 2010 and are
advised that it contained an error as the figures had been transposed and should
have referred to a headline loss per share range of between 17 cents and 19
cents and a basic loss per share range of between 23 cents and 25 cents. The
trading statement should therefore have read as follows:
Wearne is currently finalising its results for the year ended 28 February 2010
and shareholders are advised that the directors expect a headline loss per share
of between 17 cents and 19 cents and basic loss per share of between 23 cents
and 25 cents, compared to the restated headline loss per share and basic loss
per share of 11.25 and 11.19 cents respectively, reported for the year ended 28
February 2009. The reduction in earnings is mainly the result of:
- continued weak trading conditions experienced with particular reference to the
slow-down in the residential building market;
- the impact of a fuel hedge entered into during November 2008 which expired
during November 2009; and
- impairments of intangibles and goodwill arising as a result of assessments of
fair value and recoverability.
The past financial year has been particularly challenging and as a result the
Wearne directors have embarked on a complete restructure of the group`s
operations and looked hard at where costs can be cut, margins improved and
revenues enhanced.
The following initiatives will see significant cost savings going forward:
- the group`s various legal entities will be rationalised in order to reduce the
associated cost of administration and improve operational efficiencies;
- shared services will be centralised wherever possible in order to achieve
greater purchasing synergies and administrative cost savings;
- staff numbers have been reduced by approximately 15% year-on-year through
retrenchment and natural attrition in order to achieve greater productivity and
reduce payroll costs; and
- finance charges will reduce by an anticipated 20% as a result of a reduction
in the amount of long-term debt outstanding.
In addition to the above, the elimination of the diesel hedge entered into in
2008 will result in an annualised cost saving of approximately R18 million.
Taking the effect of all the expected cost savings listed above into account, as
well as an improving order book, the directors are expecting the 2011 financial
year to be better than 2010.
The financial information on which this trading statement is based has not
been reviewed or reported on by the company`s auditors.
The company`s results for the year ended 28 February 2010 are expected
to be released on SENS during the week ending 28 May 2010.
Johannesburg
18 May 2010
Designated Adviser
Vunani Corporate Finance
Date: 18/05/2010 09:12:12 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
