| Thu 31 Mar 2011, 7:07 | | CSP - Chemspec - Trading statement Update on financing Changes to the Board of |
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CSP
CSP
CSP - Chemspec - Trading statement, Update on financing, Changes to the Board of
Directors and Change of Designated Advisor
Chemical Specialities Limited
Incorporated in the Republic of South Africa
Registration number 2005/039947/06
Share code: CSP
ISIN: ZAE000109427
("Chemspec" or "the Company")
Shareholders are advised of the following:
TRADING STATEMENT
In terms of paragraph 3.4(b) of the JSE Limited ("JSE") Listings Requirements,
companies are required to publish a trading statement as soon as they are
satisfied that a reasonable degree of certainty exists that the financial
results for the period to be reported on next will differ by at least 20% from
the financial results for the previous corresponding period.
Shareholders are advised that Chempsec expects both its loss and headline loss
per share for the year ending 31 March 2011 to be at least 95% greater than the
loss and headline loss per share of 12,82 cents and 12,95 cents respectively,
reported for the year ended 31 March 2010. At this stage, the Company is unable
to quantify, with the degree of certainty required for a more accurate update,
the expected basic and headline loss per share. A further announcement
containing such detail will be released as soon as possible.
The expected decline in the Company`s results is mainly attributable to lower
revenue during the completion of the new production facility at Canelands, Kwa
Zulu Natal.
This trading statement has not been reviewed or reported on by the Company`s
external auditors.
UPDATE ON FINANCING
Shareholders are referred to the announcement of the interim results of Chemspec
for the six months ended 30 September 2010, released on the Securities Exchange
News Service ("SENS") of the JSE on 21 December 2010, wherein it was mentioned
that the Company is reviewing its financing structure to meet future working
capital requirements.
The ramping up of production at the new Canelands plant and the requirement for
rebuilding stock levels to satisfy demand have exerted further pressure on
working capital, beyond current funding facilities. As an interim measure,
certain shareholders have made available an amount of R100 million as
shareholders` loans to the Company, on commercial terms.
The Company`s finances have been restructured and a turnaround process of group
profitability is progressing with some successes. In order to strengthen the
Company`s balance sheet for sustainability and provide sufficient working
capital to finance expected growth, the Board of Directors of Chemspec ("the
Board")are finalising a rights offer, which will include the capitalisation of
the R100 million shareholders` loans referred to above. A further announcement
will be made as soon as possible.
CHANGES TO THE BOARD OF DIRECTORS
In accordance with paragraph 3.59 of the Listings Requirements of the JSE
Limited, shareholders are advised of the following changes to the board of
directors:
Resignation of non-executive directors
Messrs Anant Moodley and Michael Oldham have resigned as directors with effect
from 31 March 2011.
The Board wishes to thank both of them for their input and valued service during
their tenure as non-executive directors.
Appointment of executive and non-executive directors
With effect from 1 April 2011, the following directors have been appointed to
the Board:
Ivan Clark- Non-Executive Chairman
(Formerly chief executive officer of Grindrod Limited and currently non-
executive chairman of both Grindrod Limited and Grindrod Bank Limited).
Darryn Coyle-Dowling-Non-Executive Director
(Chief executive officer of Clark Investments)
Shane van Niekerk- Sales Executive Director
(Formerly Group Managing Director and executive director of Mr Price Group
Limited)
Chemspec welcomes the new appointees to the Board and looks forward to their
contribution to the Company.
The remaining members of the Board are unchanged and comprise Neil Page (non-
executive director, previously chairman), Bruce Mackinnon (chief executive
officer), Graham Ferns (financial director) and Robert Simpson (executive
director).
It is the intention of the Board to appoint a Lead Independent Director in due
course.
CHANGE IN DESIGNATED ADVISOR
Shareholders are hereby advised that Chemspec has appointed Grindrod Bank
Limited as designated advisor to the Company with effect from 25 March 2011.
Durban
31 March 2011
Corporate advisor and designated advisor
Grindrod Bank Limited
(Registration number 1994/007994/06)
Date: 31/03/2011 07:07:55 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.
