Value - Profit Warning And Cautionary Announcement
VALUE GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1977/002203/06)
("Value" or "the company")
Share code: VLE
ISIN code:ZAE000016507
PROFIT WARNING AND CAUTIONARY ANNOUNCEMENT
Shareholders are advised that, although gross margins for the Value group's
operations as a whole have been maintained, results for the six -month
period ending 31 August 2001 will reflect a net loss. However, these
results should reflect an operating profit before interest and taxation.
The main reasons for the decline are
- increased interest costs resulting from borrowings which were raised to
fund the recent acquisitions of Fleetrent and Rent-A-Bakkie;
- extraordinary administrative costs incurred in integrating the acquisition
of Fleetrent with the group's existing operations. The integration, which
is at an advanced stage, is proving to be successful. Management is
confident that these acquisitions will prove to be beneficial to the group
in the medium term; and
- a general slow-down of business in the retail sector.
The board of directors and management have been addressing all the issues
which have contributed to the decline, and expect an improvement in the
earnings for the second half of the financial year ending 28 February 2002.
Nevertheless, it is expected that group earnings for the full financial year
ending 28 February 2002 will be materially lower than that of the previous
year.
It is anticipated that the results for the interim period ending 31 August
2001 will be published on or about 30 October 2001.
Shareholders are advised to exercise caution when dealing in the company's
shares until the interim results are published.
Isando
27 August 2001
LEGAL ADVISER SPONSOR
WERKSMANS INVESTEC SECURITIES
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