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BSR
BSR
BSR - Basil Read Holdings Limited - Update to trading statement
Basil Read Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number 1984/007758/06)
Share Code: BSR ISIN: ZAE 000029781
("Basil Read" or "the Group")
UPDATE TO TRADING STATEMENT
Shareholders are referred to the trading statement issued on 24 August 2010
wherein shareholders were advised that Basil Read expects its earnings per
share for the interim period ending 30 June 2010 to be between 20% and 30%
lower compared to the previously reported corresponding period.
Shareholders were further advised that Basil Read expects its headline
earnings per share for the interim period ending 30 June 2010 to be between
25% and 35% lower compared to the previously reported corresponding period.
This update is being issued to provide greater clarity as to the reasons
for the decline in earnings per share and headline earnings per share.
On 21 December 2009, Basil Read concluded the acquisition of TWP Holdings
Limited ("TWP"), through the issue of 37,3 million Basil Read shares and a
cash payment of R178,9 million ("the acquisition"). The results for the six
months to June 2010 represent the first financial period in which the
results of TWP have been consolidated into the Basil Read group financial
results.
Based on the pro-forma financial effects as per the circular to
shareholders regarding the acquisition, which were prepared using the
financial results of TWP for the six months ended 28 February 2009, the
group advised shareholders that the acquisition would be earnings per share
and headline earnings per share dilutive by 11.4%. Information contained in
the group`s annual report further advised shareholders that the inclusion
of TWP into the 2009 financial results would have resulted in TWP reporting
a net loss of R6.5 million for the 12 months to December 2009.
The rationale for the acquisition remains unchanged and TWP has been
successfully integrated into the group. The full synergistic value of the
merged entities has yet to be realised but significant progress has been
made in this regard.
If the group was to disregard the impact of the acquisition, Basil Read
would have issued a trading update advising shareholders that its earnings
per share for the period ended 30 June 2010 would be between 10% and 20%
higher compared to the previously reported corresponding period. The group
would have further advised that its headline earnings per share for the
period ending 30 June 2010 would be between 0% and 10% higher compared to
the previously reported corresponding period.
The primary difference in the impact between earnings per share and
headline earnings per share is the add-back of the impairment of assets
relating to the group`s disposal of Stone and Allied Industries Limited
during the 2009 financial year. There is no similar add-back in the results
for the six months to June 2010.
Basil Read`s order book as at 30 June 2010 is a healthy R8.1 billion and
the group is encouraged by the change in sentiment in the mining industry.
TWP has secured work on new engineering projects with a capital value
exceeding R16 billion in the six months to June 2010.
The group`s results for the period ending 30 June 2010 will be published on
or about 31 August 2010.
Johannesburg
25 August 2010
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 25/08/2010 15:57:08 Produced by the JSE SENS Department.
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