Jigsaw Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/000111/06)
JSE Share code: JGS ISIN: ZAE000018370
("Jigsaw" or "the Group")
TRADING UPDATE
The group has generally experienced good growth and performance in its
real estate sales and franchise operations and better than forecast growth
in its financial services subsidiaries. An increase in the number of offices
in the group's three franchise networks and high sales levels have resulted
in the achievement of earnings forecasts. Both the Group's mortgage
origination and short-term finance companies have performed well.
Despite the performance in these areas, group earnings have been
adversely affected in other business segments and are unlikely to show
growth compared with that of the previous year.
Key reasons for the reduction in earnings for the six-month period ended
28 February 2002 are:
1. Development projects in the group's affordable housing operation
anticipated to have commenced during this six-month period have, despite
prolonged negotiations, not yet come to fruition. The loss in the company
has been controlled by the reduction of costs to minimum levels. Management
believe that a number of these negotiations will be concluded to the benefit
of this subsidiary during the next six-month period. This will assist in
returning the operation to profitability.
2. The recovery of the group's property management services company has not
progressed to the extent anticipated in the last reporting period. Problems
resulting from the consolidation of two operating divisions and their
related IT systems have lead to a loss of business and continued losses in
the merged structure. Management action has been implemented which, it is
believed, will address these problem areas with a view to returning this
subsidiary to profitability in the year ending 28 February 2003.
Jigsaw will announce the results for the year ended 28 February 2002
during the last week of May 2002.
Johannesburg
26 April 2002
Sponsor
ABSA CORPORATE AND MERCHANT BANK
Corporate Finance
(Registration number 1986/004794/06)
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