M CUBED HOLDINGS LIMITED - TRADING UPDATE
m Cubed Holdings Limited
Registration number: 1998/014568/06
JSE Share code: MCU ISIN: ZAE000033353
("m Cubed" or "the company")
Trading Update
While the headline earnings of m Cubed for the six months to
31 August 2002 will be higher than that for the comparable period last year,
earnings per share will be lower.
New business volumes are in line with expectation. However, new business fee
income in the Retail business is lower than expectation and lower than the same
period last year. This is solely attributable to the National Treasury`s non-
renewal of limited foreign investment on the offshore investment of client
funds. This issue was highlighted in the chairman`s report in the 2002 annual
report. All the other major operating businesses of m Cubed have traded at or
better than expectation.
Should the Treasury not make any foreign investment allowance available
during the rest of m Cubed`s financial year, it will have a similar negative
effect on m Cubed`s second half results. If a foreign investment allowance were
allowed before m Cubed`s financial year-end, the company would be well-placed to
achieve the growth to which shareholders have become accustomed.
Further, m Cubed has been notified that a structured investment for a major
client will not be renewed when it matures in November of this year. Had this
happened in the second half of the previous financial year, the impact on
headline earnings per share for the said period would have been a reduction of
1,3 cents fully diluted, and 1,7 cents for the full year. Income earned in the
current financial year on this investment will amount to 0,5 cent per share, of
which 0,4 cent per share has accrued for the half year. These figures have been
verified by PricewaterhouseCoopers Inc., whose reporting accountant`s report is
avaliable for inspection at the company`s registered office.
m Cubed will publish its interim results for the six months ended
31 August 2002 on or about 2 October 2002.
6 September 2002
Date: 09/09/2002 07:02:00 AM Produced by the JSE SENS Department
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