| Thu 4 Nov 2010, 16:30 | | PKH - Protech Khuthele Holdings Limited - Trading Statement |
|
PKH
PKH
PKH - Protech Khuthele Holdings Limited - Trading Statement
Protech Khuthele Holdings Limited
Registration number 2000/024352/06
JSE code: PKH ISIN: ZAE000101986
("Protech" or "the Company" or "the Group")
TRADING STATEMENT
In terms of the Listings Requirements of JSE Limited, companies are required to
publish a trading statement as soon as they become reasonably certain that the
financial results for the period to be reported on will be more than 20%
different from that of the previous corresponding period.
Shareholders accordingly are advised that headline earnings per share
(`HEPS`)and earnings per share (`EPS`)for the six months ended 31 August 2010
are expected to decline by between 50 - 60% from the 13,0 cents per share and
13,4 cents per share reported respectively for the comparative interim period
ended 31 August 2009.
As detailed in the February 2010 year-end results, the group proactively moved
into the mining sector to compensate for the collapse of its traditional private
sector market, as well as the public sector infrastructure market. To ensure a
sustained workflow during what was expected to be continued tough markets, a
strategic decision was made to load up on work in the coal sector. This
strategy has secured enough work for the full year to February 2011, although
this was at lower margins than Protech`s traditionally exceptional margins.
Importantly, these margins remain higher than the current margins experienced in
the private and public sector markets.
The strong pipeline of work secured at year end was expected to allow the group
to be more selective on the margins accepted on new work. Unfortunately, as
markets across the board showed further substantial increases in competition in
the six months to August 2010, this objective could not be realised.
The operating margins achieved in the last six months were further affected by
the following:
* Continued excessive rainfall in the first three months of the period
under review
* Significantly increased levels of competition
Protech`s project pipeline and work-in-progress remain healthy, with the value
of work executed over the period having increased by more than 25% and the
current value of contracts still to be completed totalling in excess of R850
million. As outlined at year-end, margins are likely to remain under pressure in
the short term.
The above information has not been reviewed or reported on by the company`s
auditors.
The Group`s reviewed interim results will be announced on or about 29 November
2010.
Johannesburg
4 November 2010
Sponsor
Deloitte &Touche Sponsor Services (Pty) Ltd
Date: 04/11/2010 16:30:01 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.
