Arcay Group - Results Of Agm And Renewal Of Cautio
Arcay Group - RESULTS OF AGM AND RENEWAL OF CAUTIONARY
Arcay Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1991/003944/06)
Share code: ARC ISIN code: ZAE000022406
Debenture code: ARCD ISIN code: ZAE000022398
("Arcay Group" or "the Group")
RESULTS OF ANNUAL GENERAL MEETING (AGM), TRADING UPDATE AND RENEWAL OF
CAUTIONARY
RESULTS OF AGM
All resolutions, as set out in the notice for the AGM dated 30 September 2002,
were passed at the AGM, held at 10h30, on Wednesday 23 October 2002, apart from
Ordinary Resolution Number 2, owing to the fact that director reappointments
were voted on individually.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
The Group restructuring and reorganisation process referred to in the cautionary
announcements dated 14 May 2002, 27 June 2002, 14 August 2002 and 01 October
2002, is nearing completion. Shareholders are accordingly advised to continue to
exercise caution when dealing in their securities, until such time as a more
comprehensive announcement is made. Approval of shareholders will thereafter be
sought, insofar as it might be necessary.
TRADING UPDATE
Arcay Group wishes to inform shareholders that, due to its restructuring and
reorganisation process (referred to above), approximately a third of the Group`s
employees have been retrenched and the salaries of approximately a further third
have been reduced, with the remaining third of employees being unaffected. This
process, together with other cost cutting initiatives, is expected to result in
a reduction in operating costs by approximately 40%, effective 01 October 2002.
The Group has also greatly reduced the gearing of its balance sheet. This
process is ongoing and will be continued until the company has little or no
debt.
Due to retrenchment costs, the costs relating to systems development, unusually
high legal and professional costs and significant write downs of investments,
the Group expects its results for the six months ended 30 September 2002 to be
below those of the previous comparative period. However, the efforts devoted to
systems developments over the past two years are expected to bear fruit from
December 2002 onwards.
Johannesburg
24 October 2002
Company Secretary
Arcay Client Support
Sponsor
KPMG
Investor Relations
Arcay Financial Communications
Date: 24/10/2002 05:15:00 PM Produced by the JSE SENS Department
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