Howden Africa Holdings Limited - Trading Update An
HOWDEN AFRICA HOLDINGS LIMITED
(Registration Number: 1996/002982/06)
Share Code: HWN ISIN Code: ZAE 000010583
("Howden or "the Company")
Trading update and cautionary announcement
Trading update
At the Annual General Meeting held on 28 June 2001 the Chairman indicated
that the improvement in the economic and trading environment envisaged when
last year's results were announced had not materialised, and tough market
conditions persist in most market segments in which the Group operates, and
that in particular the standard product companies: (Howden Donkin and Howden
Pumps) were experiencing difficulties in meeting expectations. The Chairman
also highlighted that the significant dividend payments the Group had made
had moved it into a net borrowed position and whereas some R2,5m in interest
was earned last year, such interest would not be earned this year.
In light of the standard product companies challenges, Group management has
undertaken a review of the activities of these companies. The review, which
has lead to product line and plant rationalisations, has resulted in an
additional charge of R6,5m against inventories.
Other than the R6.5m charge against slow moving and obsolete inventories the
Group's underlying results should be in line with the Group's expectations
as reported at the Annual General Meeting.
Cautionary Announcement
Shareholders are also advised that negotiations are in progress, which if
successfully concluded, could affect the share price. Shareholders are
therefore advised to exercise caution in dealing in the company's shares
until a further announcement is made.
Johannesburg
5 December 2001
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
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