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Decillion Limited - Trading Update And Cautionary Announcement
DECILLION LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/011692/06)
Share code: DEC
ISIN: ZAE000017612
("Decillion" or "the company" or "the group")
TRADING UPDATE AND CAUTIONARY ANNOUNCEMENT
In terms of the Listings Requirements of the JSE Securities Exchange South
Africa ("JSE"), shareholders are advised that the directors anticipate that the
Group"s headline earnings and headline earnings per share for the year ending 31
December 2003 will be substantially below those of the corresponding period.
(As defined in the JSE Listings Requirements, "substantially " denotes a change
of more than 30%).
In respect of the year ended 31 December 2002, the Group reported headline
earnings of R37,3 million, and headline earnings per share of 19,3 cents. In
respect of the six months ended 30 June 2003, the Group reported headline
earnings of R26,8 million and headline earnings per share of 15,2 cents, 28%
ahead of the corresponding period in 2002. While the Group is expected to
remain profitable for the year, the directors anticipate that headline earnings
and attributable earnings ("earnings") for the six months ending 31 December
2003 will be substantially lower than those of the corresponding period in 2002,
and consequently the earnings for the 12 months ending 31 December 2003 to be
substantially lower than the earnings for the year ended 31 December 2002.
Factors affecting Decillion"s performance over the last 10 months have been the
Fixed Income trading activities that did not contribute to revenue; and lower
than expected results from funds management, due mainly to lower performance
fees, though all Decillion funds continue to show positive returns for their
investors. The overseas businesses continue to produce improved overall results
to date in 2003. However, the stronger Rand has reduced the increase in
overseas earnings, as translated into Rands, and has reduced the Rand value of
the overseas component of Decillion"s balance sheet. Decillion"s balance sheet
remains strong and liquid.
The directors are confident that the company has positioned itself to respond to
the current difficult market conditions which are expected to continue into the
next year.
The above information has not been reviewed or reported on by the company"s
auditors. Shareholders are therefore advised to exercise caution when dealing
in the company"s shares until the company"s results for the year ending 31
December 2003 are published.
Shareholders are further advised that Decillion"s board of directors has, after
careful consideration, resolved to change the company"s financial year-end to
end-February from the current end-December. The Group"s Audit Committee
supports the decision. This will be implemented for the current financial year.
The current year-end is considered inappropriate to the group"s capital market
activities, given the very low market trading volumes at the end of December and
consequent risk of distorted market price quotations.
Decillion has reported interim results for the six months to end June 2003. The
effect of the year-end change on reporting will be that detailed second interim
results will be reported for the 12 months to 31st December 2003, in order to
facilitate comparisons with previous years. The new financial year will cover
the 14-month period ending 29 February 2004, for which full year-end reporting
will be made. The change is subject to final statutory approval by all
applicable regulatory authorities.
Consideration of a dividend payment will be made in the light of the results at
end-February 2004.
Enquiries:
Please contact:
Marius Mostert or Alwyn Smit
Tel: +27 11 217 9000
Johannesburg
12 December 2003
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 12/12/2003 03:30:03 PM Produced by the JSE SENS Department
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