Comparex - Trading Update And Cautionary Announcem
Comparex - Trading update and cautionary announcement
COMPAREX HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1994/002506/06)
JSE Share code CPX ISIN ZAE000016812
("Comparex" or "the Group")
Trading update and cautionary announcement
Trading update
Following the trading update published on 8 March 2002, the Comparex
board of directors ("the Board") considers it appropriate to issue a further
trading update in anticipation of the announcement of the Group`s results
for the financial year ended 31 May 2002.
- The Group`s European operations will report a substantial trading
loss for the second half of the 2002 financial year. In the light of
the above, more significant staff reduction programmes than
originally envisaged have been implemented in Belgium, the
Netherlands and various central functions in Europe. The Board has
decided to retain the Group`s cash resources to build the Group`s
European operations organically, supplemented where appropriate, by
prudent complementary acquisitions, whilst vigorously driving down
costs in all areas.
- The Group`s African operations will report a trading profit in the
second half of the 2002 financial year below that of the first half.
- As a result, headline earnings for the financial year ended 31 May
2002 will be lower than for the previous financial year.
The Group`s balance sheet remains strong with cash resources of
approximately R2,4 billion, after utilising approximately R500
million for share repurchases subsequent to the announcement of the
interim results.
Proposed unbundling of the Group`s african operations
The Board has resolved in principle to unbundle the Group`s African
operations and to introduce appropriate empowerment into the Group`s African
operations at or before such unbundling. An announcement setting out further
details of the proposed unbundling will be made as soon as practicable.
Shareholders are accordingly advised to exercise caution when dealing in
their shares.
Midrand
3 June 2002
Sponsor
Rand Merchant Bank
Corporate Finance
A Division of FirstRand Bank Limited
Registration number 05/01225/06
Date: 03/06/2002 05:41:11 PM Produced by the SENS Department
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