Howden Africa Holdings Limited - Company Announcem
HOWDEN AFRICA HOLDINGS LIMITED - COMPANY ANNOUNCEMENT
(Registration number: 1996/002982/06)
Share Code: HWN ISIN Code: ZAE 000010583
("HAH" or "the Company")
COMPANY ANNOUNCEMENT
At the Company`s Annual General Meeting held today at 12h00, at 1A Booysens
Road, Booysens, Johannesburg the Chairman Mr D Gawler made the following
statement;
"After five months of the current financial year, I am sure shareholders
would wish me to update them concerning the current year`s trading. An
improvement has been noted in the economic and trading environment in the
markets in which the Group operates in South Africa, and this has resulted
in an improvement in orders received in most of the traditional local
business operations.
Results of certain of the loss making offshore companies have not met
expectations and management will be re-evaluating these businesses over the
next few months. Efforts to expand export sales through the off shore
companies have proved to be particularly difficult, given the slump in the
international coal mining markets and the depressed global economic
environment.
Exceptional exchange gains totalling R 6,7m recognised in the Consolidated
Income Statement for the year to 31 December 2001 on foreign currency
denominated inter company loans to the offshore companies. In the event that
the current rand exchange rates are at their present levels at half year,
this would result in an exceptional exchange loss of R4,3m.
On 31 March 2002 the Group exercised it`s option to acquire at a cost of R
2002 a further 25,02% of the equity of Hertz Technologies (Pty) Limited,
thereby increasing the Group`s holding in this loss making subsidiary to
75%. Ongoing measures are being undertaken to stabilise this business.
In December 2001 a cautionary announcement was published advising
shareholders to exercise caution in dealing in the Company`s shares.
Negotiations in progress at the time related to the proposed merger between
the Group`s wholly owned subsidiary Howden Pumps (Pty) Limited, and Liquid
Movers Holdings NV, the controlling shareholder of Orbit group of companies.
Discussions are continuing and a further announcement will be made at an
appropriate time."
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 27/06/2002 05:42:55 PM Produced by the SENS Department
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