Profurn Limited
Press Release
29 January 2002
In response to recent events in the micro-lending industry and market
speculation about the furniture industry, and the sharp decline in the
Profurn share price, Profurn issues the following statement:
The company is not aware of any events specific to Profurn that have
occurred recently to give rise to or to justify the recent fall in the share
price.
As at 31 December 2001, the company's net asset value and gearing levels
have not changed materially from the position reported in the interim
results to 30 June 2001. Stakeholders are referred to the December sales
report published on 15 January 2002 and in particular to the statement that
more information relating to long term funding would be announced in due
course.
There has been no material deterioration in the debtors' book over the last
six months, and arrears are in line with those reported at the interim stage
and are below industry norms. As at 31 December 2001, the level of debtors
is similar to that in the prior year.
Rumours regarding any on-going SARS investigation are unfounded.
In its Interim Results report published in August 2001 Profurn advised
shareholders that it had entered a period of consolidation, expected to last
two years. Attention would be focused on working capital management,
generating positive cash flows and improving operational efficiencies.
Measures have been in place since January 2001 to reduce credit risk
exposure. These include significant enhancements to the credit approval
process and debtors follow-up mechanism. As a result, the level of deposits
has increased and average credit terms have reduced during 2001.
Recent announcements regarding the mining industry in Zambia are not
expected to have a material impact on Profurn.
SPONSOR
Grant Thornton Kessel Feinstein Corporate Sponsors (Pty) Limited
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Issued by:
Brunswick (011) 442 8803
Justine Hibbert / Nicola Atherstone
083 443 4347 / 083 326 7793
For more information: Kevin Boyers, Profurn 083 679 4663
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 has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
