Kelgran Limited - Trading Update And Cautionary An
KELGRAN LIMITED - TRADING UPDATE AND CAUTIONARY ANNOUNCEMENT
Kelgran Limited
(Incorporated in the Republic of South Africa)
(Registration number 1975/004595/06)
("Kelgran" or "the group")
Share Code: KLG
ISIN Code: ZAE000038851
TRADING UPDATE AND CAUTIONARY ANNOUNCEMENT
TRADING UPDATE
Several major factors affecting the financial results of the group have
deteriorated in the last four months necessitating a review of the outlook for
the financial year ending 30 June 2003.
Kelgran exports approximately 90% of its production. The major strengthening of
the South African currency has had a material impact on export earnings. In
addition, US Dollar prices for exports have come under pressure whilst the
market demand slowed down due to reduced activities in Europe and the United
States of America and increased competition in the Chinese market. This has
placed significant pressure on the cash flows of the business and the future
working capital requirements.
As a result of the above, non-viable operations have been closed whilst
production has been re-aligned with market requirements. Provision has been
made to reduce the value of saleable stock due to expected lower net realisable
values. Every effort has been taken to reduce costs to compensate for the Rand
strength and this will continue.
Kelgran expects to report an operating loss for the financial year ending 30
June 2003.
CAUTIONARY ANNOUNCEMENT
Shareholders are advised that the directors of Kelgran are in discussions, which
may have a material impact on the price at which Kelgran shares trade on the JSE
Securities Exchange South Africa ("the JSE"). Shareholders are advised to
exercise caution when dealing in their shares on the JSE until a further
announcement is made.
Johannesburg
27 May 2003
Sponsor
Bridge Capital Services (Pty) Limited
Date: 27/05/2003 04:30:14 PM Supplied by www.sharenet.co.za
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