| Wed 8 Jan 2003, 15:45 | | Appleton - Trading Update |
|
Appleton Limited
(Incorporated in the Republic of South Africa)
(Registration number 1999/004031/06)
Share code: ALE
ISIN code: ZAE000027488
("Appleton")
TRADING UPDATE
Appleton shareholders are advised that continued difficult market conditions,
coupled with the recent strengthening of the Rand, have had an adverse effect on
the company`s financial results for the first five months of the financial year.
During the corresponding period in the previous financial year, Appleton showed
an unrealised forex gain of R8,4 m. At the current exchange rate, Appleton will
show an unrealised forex loss this financial period of approximately R 3,2 m.
New fund inflows, both locally and internationally, have been disappointing.
Together with adverse market movements, this has impacted negatively on the
group`s funds under management and concomitant net fee income. Funds under
management in South Africa have declined by 9,1% from R 1 639 m to R 1 489 m,
whilst offshore funds under management have declined by 2,6% from R 2 437 m to R
2 374 m, mainly due to local currency appreciation. In addition, the results of
Appleton Securities have been poor, owing to weak equity markets and the
previously announced decision to curtail the group`s proprietary trading
activities, which resulted in retrenchment costs.
In the current financial period, it is anticipated that Appleton will record a
net loss for the six months to end December 2002, which will be a significant
adverse result compared with that reported for the corresponding period in the
previous financial year. Appleton`s interim results are scheduled to be
announced during the middle of February 2003. The information contained in this
trading update has not been audited.
As announced on 3 December and 27 December 2002 PSG Investment Services (Pty)
Limited , a subsidiary of PSG Group Limited ("PSG Group") has proposed a scheme
of arrangement ("the scheme") between Appleton and its shareholders (other than
PSG Group and/or its subsidiaries and any subsidiaries of Appleton) in terms of
which the scheme participants will, if the scheme is implemented, receive a
scheme consideration of 9c per share, provided that the scheme consideration
will be reduced if and to the extent that the free net cash or cash equivalent
of Appleton (inclusive of various stated assets of the Appleton Group at an
agreed value) at 6 January 2003 is less than R 55 million). The effective date
of the scheme, if implemented, will be 1 January 2003. This Trading Update in
no way affects the scheme, which is subject only to the requisite regulatory and
statutory approvals. In addition, as previously stated, the Appleton Board
anticipates that the free net cash or cash equivalent of Appleton at 6 January
2003 will be more than R55 million.
Shareholders are requested to direct any queries to Bruce Sneddon, Chief
Executive Officer, on telephone (021) 799-8010.
Cape Town
8 January 2003
Sponsor
Corpcapital Corporate Finance
Date: 08/01/2003 03:00:01 PM Produced by the JSE SENS Department
