| Wed 24 Aug 2011, 7:07 | | DSY - Discovery Holdings Limited - Trading Statement |
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DSY
DSY
DSY - Discovery Holdings Limited - Trading Statement
DISCOVERY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1999/007789/06)
ISIN: ZAE000022331
Share Code: DSY
("Discovery" or "the Company")
TRADING STATEMENT
Discovery is currently finalising its results for the year ended 30 June 2011,
which will be released on 1 September 2011.
In order to assist in understanding the results for the period, Discovery
intends on providing Normalised Headline Earnings, which is defined as
Earnings excluding the impact of the acquisition of Standard Life Healthcare
and excluding realised gains on available-for-sale financial instruments.
Management is of the view that this best represents the operating results for
the period.
Shareholders are referred to the trading statement for the nine month period
ended on 31 March 2011 released on 24 June 2011, which provided a high level
overview of the Discovery Group performance. Shareholders are further referred
to the announcement of 11 May 2010 wherein Discovery announced its acquisition
of the entire share capital of Standard Life Healthcare, a wholly-owned
subsidiary of the Standard Life Group, for R1.56bn (GBP138m), as well as the
related increase in shareholding in Prudential Health Holdings Ltd ("PHHL"),
the holding company of PruHealth and PruProtect, the joint ventures between
Discovery and Prudential Assurance Company ("Prudential") of the United
Kingdom ("the Transaction").
Applying the requirements of IFRS3: Business Combinations to the Transaction
results in several large impacts in the income statement of the Company,
including the recording of a substantial profit on the increase in Discovery`s
shareholding in PHHL from 50% to 75%. Full details of these impacts will be
provided with the results.
Normalised Headline Earnings per share is expected to be between 25% and 35%
higher than the corresponding reporting period of the previous year.
Headline Earnings per share, which includes some, but not all, of the impacts
of the Transaction and excludes realised gains, is expected to be between 0%
and 10% higher than the corresponding reporting period of the previous year.
Earnings per share, which includes all of the impacts of the Transaction and
realised gains, is expected to be between 45% and 55% higher than the
corresponding reporting period of the previous year.
The financial information on which this trading statement is based has not
been reviewed and reported on by the Company`s auditors.
Sandton
24 August 2011
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 24/08/2011 07:07:22 Produced by the JSE SENS Department.
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