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Tourvest - TRADING UPDATE AND CAUTIONARY ANNOUNCEMENT
TOURISM INVESTMENT CORPORATION LIMITED
(Registration number 1996/008144/06)
Share code: TRT ISIN: ZAE000012472
("Tourvest" or "the company")
TRADING UPDATE AND CAUTIONARY ANNOUNCEMENT
The strong appreciation of the rand since the announcement of the Reviewed Group
Results on the 14th August 2003 has had a major negative impact on the trading
of the group and it is forecast that this will continue through to the half year
end.
Shareholders are accordingly advised that Tourvest"s headline earnings and
headline earnings per share for the six months to 25/12/2003 are anticipated to
be substantially lower than that of the prior comparative period.
In terms of the terminology adopted by the JSE Securities Exchange South Africa
("JSE") "substantially" means greater than 30%.
In addition, it should be noted that in the Reviewed Group Results the Board
advised Shareholders that "STC and the foregone interest on the special dividend
(at a cost of R47 million, 6.1 cps) will result in our attributable income and
EPS for F2004 being lower that F2003".
The split of this impact between the 2 halves is as follows:
1st Half 2nd Half Total
R"million R"million R"million
STC 31 - 31
Interest Foregone (net of tax) 6 10 16
37 10 47
The R/US$ rates experienced and projected in this trading update are as follows:
%
R/US$ Exchange Rate F2004 F2003 Appreciation
1st 1/4 7.48 10.41 28%
2nd 1/4 (assumed 7.00 forward) 7.00 9.79 28%
1st 1/2 Total 7.24 10.10 28%
Tourvest is 75% geared in terms of the R/US$. The negative impact of the
stronger rand in terms of:
Discretionary spend of foreign tourists and
South African as an internationally cost competitive destination
is substantial. This impact, whilst not felt by the Outbound Division, is
relevant to the Inbound, Financial Services and Retail Merchandise divisions.
The extent of the exchange rate impact is unlikely to be the same in the 2nd
half of the year, as the average exchange rate in the comparable prior period
was 8.12 R/US$.
The information provided in this announcement does not contain and should not be
construed as containing any forward looking statements or projections of any
nature whatsoever for periods after 25 December 2003.
Cautionary Announcement
This trading update has not been reviewed or reported on by the Company"s
Auditors. Should it be deemed necessary, a review will be conducted.
Shareholders are therefore advised to exercise caution when dealing in the
Company"s securities until publication of the Company"s interim results early in
February 2004. As a result of the Cautionary Announcement the company has now
entered a closed period that will end on publication of the Company"s interim
results.
Johannesburg
27 October 2003
Sponsor
Investec Securities Limited
Date: 27/10/2003 11:30:25 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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