HAH - COMPANY ANNOUNCEMENT
HOWDEN AFRICA HOLDINGS LIMITED
(Registration number : 1996/002982/06)
Share Code: HWN ISIN Code: ZAE 000010583
("HAH" or "the Company")
COMPANY ANNOUNCEMENT
At the Company"s Annual General Meeting held today at 12h00, at 1A Booysens
Road, Booysens, Johannesburg the Chairman Mr J S Feek made the following
statement;
After 5 months trading in the current financial year, I am sure that
shareholders would wish to be updated on the progress that the Group is making.
The Business environment and markets in which the Group operates in South Africa
have remained sound. The continuing strength of the Rand, however will affect
South African resource based industries and exports and we must expect that
future projects and expansion could be delayed or deferred. We therefore remain
cautious in terms of the outlook for the full year.
Our appraisal of the various operations continues and as reported recently
through the JSE, the Group has disposed of its interests in the wholly owned
subsidiary Hertz Technologies; in this instance the acquirer is Mandlakazi
Engineering Holdings (Pty) Ltd, an empowerment Group, who"s credentials will
compliment the Hertz marketing efforts. Off shore activities are being closely
monitored and Engart Inc. is establishing its presence in the environmental
market in the United States and is steadily building up a useful reference list.
Export markets generally continue to be difficult due to the global economic
environment and currency movements.
Exceptional exchange losses totalling R7.2m were recognised in the consolidated
income statement for the year to 31 December 2002. These charges arose on
foreign currency denominated intercompany loans to the offshore companies. In
the event that the exchange rates remain at their present levels, at the half
year, this would result in a further exceptional exchange loss of R1,9m.
In anticipation of the question concerning the resumption of dividends to
shareholders, may I confirm that the board will adopt a conservative approach.
The board consideration and deliberation will encompass the forward economic
environment and its impact on both present and future cash flows and earnings.
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 12/06/2003 04:19:23 PM Supplied by www.sharenet.co.za
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