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BFS
BFS
BFS - Blue Financial Services Limited - Trading Statement
BLUE FINANCIAL SERVICES LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 1996/006595/06)
JSE Code: BFS
ISIN: ZAE000083655
("Blue" or "the Company" or "the Group")
TRADING STATEMENT AND NOTIFICATION OF WARRANTY CLAIMS RECEIVED BY THE COMPANY
IN TERMS OF THE MAYIBUYE SUBSCRIPTION AGREEMENT
1. Trading statement
Further to the trading update released on SENS on 1 February 2011, the
Board advises that it has now obtained a reasonable degree of certainty
that the loss incurred by the Company for the financial year ended 28
February 2011 will be reduced. Although all of the results have not yet
been finalised, the Board considers it important to communicate the
extent of the reduction in the loss.
The company expects a decrease in the basic loss per share ("LPS") of
between 75% and 95% and a decrease in the headline loss per share
("HLPS") of between 72% and 92% for the year ended 28 February 2011,
compared to the LPS and HLPS reported in the prior comparative period.
This translates into a basic loss of between 8.9 and 42.9 cents per share
and a headline loss of between 10.4 and 37.4 cents per share attributable
to ordinary shareholders, compared to the LPS of 170.3 cents and HLPS of
135.0 cents for the previous year.
As reported on SENS on 1 February 2011, the main reasons for the
reductions in the losses are:-
- cost savings generated as a result of right-sizing the organization;
- credit impairments reduced through improvements in collection
processes;
- no further write-offs of financial and intangible assets post the
recapitalization of the Group by Mayibuye; and
- improvements in operational efficiencies and business
sophistication.
The restructuring during the current financial year and the impact of the
Mayibuye turnaround strategy, have contributed to the expected
improvement in financial results. The management actions aimed at
stabilizing the business have led to a decline in new loan advances to
customers during the year. This should change with the on-going market
repositioning of the business and enhanced credit-granting procedures.
These actions provide a sound platform for growth and returning the group
to profitability in the future.
2. Notification of Warranty Claims received
In terms of Mayibuye`s rights contained in the Subscription Agreement
concluded with the Company, shareholders are advised that a notification
of warranty claims has been received from Mayibuye. Mayibuye is entitled
to have such warranty claims settled through the issue of such number of
Blue ordinary shares (based on the 30 day VWAP per Blue ordinary share)
which in aggregate would be equal to the value of the warranty claim(s).
The Company has not yet confirmed these claims. However, in the event
that the warranty claims are settled they will not have any further
impact on the Company`s Income Statement. The assessment of any warranty
claims will be dealt with through an independent committee of the Board.
This trading statement has not been reviewed or reported on by the Company`s
external auditors.
Johannesburg
26 April 2011
Designated Adviser: Grindrod Bank Limited
Date: 26/04/2011 08:00:01 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.
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