Servest Holdings Limited - Profit Warning And Stak
SERVEST HOLDINGS LIMITED
(Registration Number 1986/0000785/06)
PROFIT WARNING AND STAKEHOLDER UPDATE
The group has experienced extremely tough trading conditions in the first
four months of the current financial year. In particular, substantially
lower income derived from gaming and leisure projects undertaken in
comparison with the previous financial year and the continued poor
performance of the office automation business has impeded performance.
Although trading conditions have improved during the second quarter and this
improvement is expected to continue, Headline Earnings Per Share performance
for the six-month period to 31 August 2001 ("interim period"), whilst
positive, will be significantly lower than the corresponding period last
year.
The decline will be less profound at the Operating Profit before Interest,
Tax, Depreciation and Amortisation (EBITDA) level, however higher
depreciation and finance charges, arising through growth investment in the
last financial year, will severely impact Headline Earnings Per Share.
Maximum operating efficiencies are being extracted at the divisional level.
Cash generation remains strong and is being put to good use, together with a
prudent level of gearing to fund organic growth and to facilitate
opportunistic acquisition of small industry competitors suffering under
prevailing adverse economic conditions.
The board has the utmost faith in the group's business model, its people and
its market position, all of which provide a sound platform for long-term
sustainable growth.
Kenton J Fine
Group Chief Executive
23rd August 2001
Any queries to be directed to K J Fine (011) 442 7484 or 083 250 0967 or
Dennis Zietsman (011) 442 7484 or 082 450 8152
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
(Registration number 1995/011798/07)
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