CHAIRMAN'S ANNOUNCEMENT
I am sure shareholders would wish me to update them concerning the current
year's trading.
The improvement in the economic and trading environment envisaged when last
year's results were announced has not materialised and tough market
conditions persist in most market segments in which the Group operates. In
particular the standard product companies: ( Howden Donkin and Howden Pumps)
are experiencing difficulties in meeting expectations. On the other hand
Howden Power and the Environmental Control Division are performing in line
with expectations. Meanwhile the Group is continuing its efforts to expand
export sales and is hopeful that further progress will be achieved this
year.
Shareholders will recall that dividends in respect of the past two years
exceeded earnings for those years and were in part paid out of reserves. As
a consequence of these dividend payments the Group has moved into a net
borrowings position; and whereas the Group earned some R 2,4m in interest
last year, such interest earnings will not be repeated this year.
In future dividend policy will be set in the light of earnings and cashflow
and will also take account of the Group's need to invest in its future.
Ends
On Behalf of : Howden Africa Holdings Ltd
Client Contact : Mike Lake
Telephone No. : (011) 240-4000
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
