| Fri 30 Mar 2012, 15:02 | | APK - Astrapak Limited - Trading statement |
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APK
APK
APK - Astrapak Limited - Trading statement
Astrapak Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1995/009169/06)
Share Code: APK
ISIN: ZAE000096962
("Astrapak" or "the Group")
TRADING STATEMENT
Trading overview - Financial year ended 29 February 2012
Market conditions over the second half remained challenging and so performance
enhancements were not attained. The Flexible Division remained under pressure
having a significant negative influence on the results for the financial year.
The Group remains focused on implementing a strategy which is designed to adapt
to envisaged market conditions in the global environment.
The main factors contributing to the results for the financial year ended 29
February 2012 were:
The consumer economy trended weak and demand in most markets served by the Group
was lacking. Faced with these challenges customers drove prices down and
competition amongst converters continued to be fierce;
Industry wide strikes during July 2011 affected the majority of the Group`s
operations, followed by industrial action at a number of the Group`s major
customers into August 2011, resulted in lower than anticipated revenues and
profits;
Supply of polymers were problematic and had an ongoing negative impact on the
business through stock outs followed by overstocking, in some cases at higher
prices;
The more rapid introduction of the Group`s strategy to size down the Flexible
footprint was achieved however at once off significant costs. In total 5
operations were discontinued, merged or reduced in size in the second half of
the financial year; and
A thorough assessment of the useful life and competitiveness of the Group`s
entire asset base was conducted. While benefits were recognized as a result of
reworked estimates in certain instances, a material amount of additional
impairments were accounted for in the results.
Trading Statement - Financial year ended 29 February 2012
In terms of the Listings Requirements of the JSE Limited, a company is required
to publish a trading statement as soon as the company is satisfied that a
reasonable degree of certainty exists that the financial results for the period
to be reported upon next will differ by at least 20% or more from those of the
corresponding reporting period of the previous year. The forecasts in respect of
the financial year ended 29 February 2012 on which this trading statement is
based, has not yet been reviewed/audited and reported on by the Group`s external
auditors and the following trading statement is therefore based on the
information available at the time of this announcement.
The Board therefore advises shareholders of Astrapak that:
Headline earnings per share ("HEPS") from continuing operations is expected to
be between 20% and 25% lower than that for the financial year ended 28 February
2011 ("comparative period"), which will result in anticipated HEPS of between
55.78 cents and 52.3 cents (2011: 69.73 cents);
HEPS from continuing and discontinued operations is expected to be between 65 %
and 70% lower than that reported in the comparative period, which will result in
anticipated HEPS of between 25.83 cents and 22.14 cents (2011: 73.79cents);
Earnings per share ("EPS") from continuing operations is expected to be between
95% and 100% lower than that reported in the comparative period, which will
result in anticipated EPS from continuing operations of between 3.48 cents and
0.00 cents (2011: 69.59 cents); and
EPS from both continuing and discontinued operations is expected to be between
140% and 150% lower than that reported in the comparative period, which will
result in anticipated loss per share of between 29.46 cents and 36.83 cents
(2011: 73.66 cents).
The Group`s results for the financial year ended 29 February 2012 are expected
to be finalised and released on SENS on or about 24 April 2012.
Sandton
30 March 2012
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 30/03/2012 15:02:09 Produced by the JSE SENS Department.
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