| Fri 1 Oct 2010, 15:36 | | AGI - AG Industries Limited - Trading update and cautionary announcement |
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AGI
AGI
AGI - AG Industries Limited - Trading update and cautionary announcement
AG INDUSTRIES LIMITED
(Incorporated in the Republic of South Africa)
Registration Number: 1980/004051/06
Share Code: AGI
ISIN :ZAE000039467
("AGI" or "the Company")
TRADING UPDATE AND CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the trading statement announcement released on SENS
on 12 August 2010 wherein it was stated that AGI`s reviewed financial results
for the year ended 30 June 2010 would be released on or about Monday, 27
September 2010. In light of the following disclosure, it is anticipated that the
reviewed financial results for the year ended 30 June 2010 will be released on
or about 6 October 2010.
As indicated in the trading statement of 12 August 2010, the Company continues
to trade under difficult market conditions which affect the construction sector.
The Company`s restructuring programme undertaken during its financial year ended
30 June 2010 has been substantially implemented. The restructure plan has
resulted in a lower overhead cost base for the Company`s business, the benefit
of which should be enjoyed during the Company`s 2011 financial year.
Cautionary announcement
There has been continued low activity within the construction sector in South
Africa and, in particular, the Western Cape. Excess capacity within this sector
has resulted in price pressures, thus leading to lower margins. Consequently,
it has become apparent that a further capital injection may be required by the
Company. To this end the Company`s controlling shareholder, Castellas
Investment Holdings Limited, has initiated a review which is anticipated will be
completed during November 2010, whereafter a further announcement will be
published.
Pending the conclusion of this process, shareholders are advised to exercise
caution when dealing in their shares in the Company until a further announcement
is made
Johannesburg
1 October 2010
Sasfin Capital
(A Division of Sasfin Bank Limited)
Date: 01/10/2010 15:36:17 Produced by the JSE SENS Department.
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