| Wed 25 Aug 2010, 12:13 | | APK - Astrapak Limited - Operational review and trading statement |
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APK
APK
APK - Astrapak Limited - Operational review and trading statement
for the six months ending 31 August 2010
ASTRAPAK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1995/009169/06)
ISIN: ZAE000096962
Share Code: APK
("Astrapak" or "the Group")
OPERATIONAL REVIEW AND TRADING STATEMENT FOR THE SIX MONTHS ENDING
31 AUGUST 2010
OPERATIONAL REVIEW
The operating environment remained challenging during the first
half of the financial year with the following factors negatively
impacting on the estimated trading results for the six month period
to 31 August 2010:
* Consumer markets have continued to retract, which in turn has
resulted in increased competition, aggressive pricing from
competitors, and pricing pressure from customers.
* Industrial action at three of our Flexible operations, which
include the largest unit within the Group, for periods of between 4
(four) and 16 (sixteen) weeks. Each of these regrettable work
stoppages has now been resolved, but impacted significantly on
efficiencies and operating margins within the Flexible division as
a whole.
Although sales have remained relatively stable from a volume
perspective, the above factors have negatively impacted on
operating margins for the period. While the position around
consumers, competitors and customers is not expected to change in
the short term, the Group will continue to: focus on retaining and
growing existing volumes; work towards the correct long term
objectives; and emerge as a better business.
TRADING STATEMENT
In terms of the Listings Requirements of the JSE, a company is
required to publish a trading statement as soon as the company is
satisfied that a reasonable degree of certainty exists that the
financial results for the period to be reported upon next will
differ by at least 20% or more from those of the corresponding
reporting period of the previous year ("comparative period"). The
forecasts in respect of the reporting period to 31 August 2010, on
which this trading statement is based, have not yet been reviewed,
audited or reported on by the Group`s auditors and the following
trading statement is therefore based on the information available
at the time of this announcement.
The Board therefore advises shareholders of Astrapak that:
- Headline earnings per share ("HEPS") from both continuing and
discontinued operations is expected to be between 40% and 50% lower
than that reported in the comparative period, which will result in
anticipated HEPS of between 25.9 cents and 21.6 cents (2009: 43.1
cents);
- HEPS from continuing operations expected to be between 40% and
50% lower than that reported in the comparative period, which will
result in anticipated HEPS of between 28.3 cents and 23.6 cents
(2009: 47.1 cents);
- Earnings per share ("EPS") from both continuing and
discontinued operations is expected to be between 25% and 35% lower
than that reported in the comparative period, which will result in
anticipated EPS of between 24.1 cents and 20.9 cents (2009: 32.1
cents); and
- EPS from continuing operations is expected to be between 40%
and 50% lower than that reported in the comparative period, which
will result in anticipated EPS from continuing operations of
between 26.5 cents and 22.08 cents 2009: 44.2 cents).
The Group`s results for the six months ended 31 August 2010 are
expected to be finalised and released on SENS on or about 12
October 2010.
Sandton
25 August 2010
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 25/08/2010 12:13:23 Produced by the JSE SENS Department.
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