| Wed 12 May 2004, 10:19 | | Rainbow Chicken Limited - Trading Statement |
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Rainbow Chicken Limited - Trading Statement
Release Date: 12/05/2004 09:10:54 Code(s): RBW
Rainbow Chicken Limited - Trading Statement
Rainbow Chicken Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1966/004972/06)
ISIN: ZAE000019063
Share Code: RBW
("Rainbow" or "the Company")
TRADING STATEMENT
Shareholders are advised that the Company is currently finalising its results
for the year ended 31 March 2004, which will be released on SENS on or about 19
May 2004.
Restatement of Comparative Figures in respect of Deferred Taxation
In reviewing the current year deferred taxation liability, it was found that the
liabilities raised in the prior financial years ending 31 March 2002 and 31
March 2003 were incorrect. To ensure compliance with Accounting Statements (AC
102 and AC 103) dealing with Income Taxes, the Company"s 2003 comparative
figures have been restated to recognise a deferred taxation liability in respect
of non-recoupable development allowances on farming buildings, which had
previously not been appropriately provided for.
The change requires restatement of the prior year opening reserves by R6,7
million, being the effect on the 2002 year, the deferred taxation charge by
R91,7 million in respect of the 2003 year and, consequently, the deferred
taxation liability of R 98,4 million in 2003. On the 2003 income statement, pre
tax profit is unaffected, but after tax, attributable profit and headline
earnings were overstated to the extent of the deferred tax charge of R91,7
million. The restatement has no past or future impact on operating profit or
cash flow.
The effect of the restatement of the 2003 comparative figures in respect of
deferred taxation is as follows:
Prior year Prior year
restated as
previously
Rm reported
Rm
Impact on income statement:
Profit before taxation 244,5 244,5
Taxation (82,6) 9,2
Profit after taxation 161,9 253,7
Preference dividends (0,1) (0,1)
Attributable profit 161,8 253,6
Headline Earnings
Profit attributable to 161,8 253,6
ordinary shareholders
Loss on disposal of 3,7 3,7
property, plant & equipment
Net asset impairment 17,9 17,9
provision raised
Headline earnings 183,4 275,2
Statistics
Headline earnings per share 70.8 106.2
(cents)
Fully diluted headline 66.7 99.2
earnings per share (cents)
Net asset value per share 371.0 408.5
(cents)
Impact on balance sheet:
Accumulated loss 115,7 17,2
Deferred taxation 89,5 (8,9)
liability/(asset)
Performance Expectation for the year ended 31 March 2004
The Company"s earnings performance for the year ended 31 March 2004 is not
impacted by the restatement. However, where previously a material decline in
headline earnings for the year ended 31 March 2004 had been expected on a year-
on-year basis, being mainly due to the Company"s return to a taxable position,
it is now anticipated that with the restated comparative, the earnings
expectation is that headline earnings per share will be materially above and
basic earnings per share will be substantially above the prior year.
The financial information on which this trading statement is based has been
reported on by the Company"s auditors, Deloitte & Touche. The report will lie
for inspection at the Company"s registered office.
Durban
11 May 2004
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