| Thu 8 Aug 2013, 18:08 | | AFGRI LIMITED - Trading update and cautionary anno |
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AFGRI LIMITED - Trading update and cautionary anno 8 Aug 2013
AFR 201308080059A
Trading update and cautionary announcement
AFGRI Limited
(Incorporated in the Republic of South Africa)
Registration Number: 1995/004030/06
ISIN: ZAE000040549
JSE share code: AFR
("AFGRI" or "the Company")
Trading update and cautionary announcement
Trading update
Further to the trading update released on 24 April 2013 (“previous
announcement”), AFGRI shareholders (“Shareholders”) are advised that
headline earnings per share (“HEPS”) from all operations is expected to be
between 25 – 34% lower for the year ending 30 June 2013 compared to that
of the previous year. Earnings per share (“EPS”) is expected to decrease
between 39 – 48% compared to that of the previous year, which EPS includes
the impairment as discussed below.
Since the previous announcement regarding this issue, plans by the South
African Government to address the proposed additional import tariffs and
anti-dumping initiatives to combat the record levels of imports have not
yet materialised. Consequently, the South African poultry industry remains
in distress and, therefore, the AFGRI board of directors (“Board”) has re-
assessed the valuation of AFGRI’s poultry business resulting in the
impairment of the goodwill and intangibles in the business of R117
million.
This trading statement has not been reviewed or reported on by AFGRI`s
external auditors. The release of the final announcement of results for
the year ending 30 June 2013 is expected to be published on SENS on or
about 4 September 2013.
Cautionary announcement
Independent of the above trading update, Shareholders are advised that
AFGRI has entered into discussions, which, if successfully concluded, may
have a material effect on the price at which AFGRI’s securities trade on
the JSE Limited. Accordingly, shareholders of the Company are advised to
exercise caution when dealing in AFGRI’s securities until
a further announcement is made.
Centurion
8 August 2013
Sponsor: Investec Bank Limited
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