| Wed 17 Nov 2010, 16:20 | | QPG - Quantum Property Group Limited - Trading Update |
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QPG
QPG
QPG - Quantum Property Group Limited - Trading Update
QUANTUM PROPERTY GROUP LIMITED
Incorporated in the Republic of South Africa
(Registration number 1984/002788/06)
Share code: QPG ISIN: ZAE000125647
("QPG" or "the company" or "the group")
TRADING UPDATE
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 differ by more than 20%
from the previous corresponding period.
Following a review by management of the consolidated group financial results for
the twelve months ended 31 August 2010 ("the year under review"), QPG expects
basic and headline losses per share to be between 17.57 and 20.45 cents compared
to the basic and headline earnings per share of 14.4 cents for the same period
as set out in the revised listings particulars dated 25 August 2008 ("the
Listings Particulars").
The financial information on which this trading statement is based has not been
reviewed or reported on by the company`s auditors.
The decrease in basic and headline earnings per share is primarily attributable
to the write-off of the balance of the restraints of trade totalling R23
million. In terms of the Listings Particulars this balance was due to be
written-off in full during the previous financial year. However, with the actual
listing date having occurred later than originally anticipated, the write-off of
the restraints of trade commenced later than expected and carried over into the
year under review.
Similarly pre-opening expenses for 15 on Orange (Proprietary) Limited, QPG`s 50%
management joint venture with Protea Hotels Group (Proprietary) Limited, which
should have been written-off in the previous financial year if the Hotel had
opened on schedule, were written-off in full during the year and were higher
than expected at approximately R6 million.
Excluding the once-off write-off of the restraints of trade and the pre-opening
expenses, the basic and headline losses per share would have been approximately
2.3 cents.
The below-forecast results have also been driven by the impact on QPG of the
global recession, unforeseen delays resulting in the 15 on Orange Hotel opening
later than anticipated in mid-December 2009 and a short-term, temporary
oversupply of 5 star hotel rooms in Cape Town. However, 15 on Orange is
currently enjoying healthy occupancies in contrast to the negative industry
trend, leveraging a strong reputation and distinct offering established since
opening . The development and Hotel have garnered international recognition with
several awards including the South African Property Owners Association ("SAPOA")
award for `Innovative Excellence in Property Development`, House and Leisure`s
`Best Hotel of the Year` and Winner in the `Best Leisure and Hospitality`
category of the Europe & Africa Property Awards 2010 - part of the International
Property Awards in which 15 on Orange is a runner up on the world stage.
The directors are confident that results will meet expectations going forward.
Johannesburg
17 November 2010
Sponsor
Merchant Capital
Date: 17/11/2010 16:20:02 Produced by the JSE SENS Department.
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