L.A. GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1936/008786/06)
Share Code: LAR ISIN: ZAE000028676
Share Code: LAN ISIN: ZAE000028684
("L.A. Group" or "the company")
Trading update
Apparel and footwear company L.A. Group, which focuses on the wholesale
distribution of branded clothing and footwear and the supply of corporate
clothing for the local and international markets, will release its results for
the year ended 28 February 2003 on or about Friday, 9 May 2003. The rapid
strengthening of the rand against other major currencies and specifically the US
Dollar in recent times (over 30% since 31 August 2002) will adversely effect the
results for the year. The directors estimate the impact of foreign currency
translation losses to be approximately R20 million, compared to translation
gains for the six months to 31 August 2002 of R0,2 million and translation gains
for the year ended 28 February 2002 of R14,7 million. In accordance with
Generally Accepted Accounting Practice, Foreign Exchange Contracts ("FEC"s")
must now be recorded at fair value with the resultant mark-to-market gain or
loss taken to income. This accounts for approximately R12 million of the R20
million foreign currency translation losses.
Notwithstanding the aforegoing, the directors believe that the company will
still record sufficient earnings to be able to declare a dividend of not less
than that of the previous year.
Cape Town
22 April 2003
Sponsor
Sasfin Bank Limited
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