PROFIT WARNING
Shareholders are advised that the Group"s results for the twelve months ended 31
May 2003 are expected to be lower than the results for twelve months of the
previous year.
The decline in earnings is attributable to the following factors:
Lyons Corporate Lease Fund Limited, which is 45% directly owned by the Group, is
a geared fund built on the foundation that the Net Asset Value would grow
exponentially over the next 10 years. In order to support this type of fund it
has always been essential to fix all interest rates within the fund to protect
against increases in the interest rates, which would negatively impact on the
cash flow base of the fund. These interest rate fixes thereby underpin the
property valuations within the fund and are directly linked to the R150 and R153
Government bond rates. These instruments are currently trading at record lows,
necessitating a provision for the potential loss to the fund in terms of AC133.
This together with the loss on closing down the Structured and Capital Asset
Finance division may result in Lyons reporting a loss for the 12 months ended 31
May 2003.
Sandton
17 June 2003
Sponsor
Deloitte & Touche Sponsor Services
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