Primeserv Group Limited - Cautionary Announcement And Trading Update
Primeserv Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/013448/06)
(`Primeserv` or `the company`)
Share code: PMV ISIN: ZAE000039277
CAUTIONARY ANNOUNCEMENT AND TRADING UPDATE
Shareholders of Primeserv are advised that headline earnings for the year ended
30 June 2004 will be substantially lower (`substantially` being a decrease equal
to or greater than 30% as defined in the JSE Securities Exchange South Africa
(`JSE`) Listings Requirements) than those of the previous comparative period.
Unanticipated and severe difficulties in the Group`s HR Solutions division have
come to light in the last few days. These relate to specific learnership
projects within the Group`s HR Solutions Division. The projects in question have
been suspended. This once-off situation has significantly impacted the
division`s performance. Action has been taken to rectify the situation, but the
division will remain under pressure in the short term.
Notwithstanding this, the primary operation of the Group, namely Primeserv
Outsourcing, continues to perform strongly and the Colleges unit continues to
operate profitably. The Group`s balance sheet remains strong as does cash
generation.
Further details will be provided as soon as investigations are complete and
after a full audit review. This will occur prior to the publication of
Primeserv`s results for the year ended 30 June 2004, due for publication before
30 September 2004.
As a result of the above and due to the fact that the earnings for the year
ended 30 June 2004 have not yet been reviewed and reported on by Primeserv`s
auditors, shareholders are advised to exercise caution when dealing in the
Company`s shares until the aforementioned year end results are published.
Sandton
20 August 2004
Sponsor:Deloitte & Touche Sponsor Services (Pty) Ltd
(Registration number 1996/000034/07)
Date: 20/08/2004 03:50:02 PM Produced by the JSE SENS Department
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