STEERS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa
(Registration number 1969/004875/06)
ISIN code : ZAE000008330
Share code : STE
("the Group")
Profit warning
Shareholders are advised that the Groups' earnings for the year ended
28 February 2002 will be lower than the earnings reported for the year ended
28 February 2001.
The main reasons for this decline are as follows:
increased pressure on margins in the Manufacturing and Distribution Division
resulting from increases in the price of meat products and fuel costs, as
well as the decline of the Rand against the Dollar; and
costs incurred in the restructuring and subsequent outsourcing of the Store
Development Business Unit, which restructuring and outsourcing process is
now complete and will not result in any additional costs being incurred in
this financial year.
In spite of the above, the Groups Manufacturing and Distribution Division,
which includes the Store Development Business Unit, continues to trade
profitably and management is confident that the above matters have been
addressed and will not have any effect on earnings in this financial year.
The Group's Franchising Division, which consists of the Steers, Debonairs
Pizza and FishAways brands, reported solid growth in store numbers and
revenue for the year ended 28 February 2002.
Management is confident that growth in earnings will be positive in the
current financial year as a result of its solid position in the South
African franchising industry, coupled with its low risk local and
international expansion programme.
Shareholders are accordingly advised to exercise caution when dealing in the
shares in the company. It is anticipated that the Group's results for its
financial year ended 28 February 2002 will be published towards the end of
May 2002.
24 April 2002
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