New Clicks Holdings - Trading Statement
New Clicks Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/000645/06)
JSE share code: NCL
ISIN: ZAE000014585
(`New Clicks` or `the group`)
NEW CLICKS HOLDINGS - TRADING STATEMENT
New Clicks anticipates that diluted headline earnings per share for the 12
months ended 31 August 2004 will be 12.5% to 17.5% higher than the previous
year.
The group`s core retail trading brands have underperformed management`s
expectations in the second half of the year, impacted by an increasingly
challenging FMCG retail market and the deflationary environment.
Owing to the ongoing uncertainty around the implementation of the medicine
pricing regulations and single exit pricing, which are currently being
challenged in court by New Clicks, the group has written off the goodwill of
R273 million relating to the acquisition of pharmacy group Purchase Milton &
Associates (PM&A). PM&A has been consolidated with effect from 1 March 2004 and
will be reflected in the financial results for the first time this year.
As a result of this goodwill write-off, the group anticipates that the diluted
attributable loss per share for the 12 months ended 31 August 2004 will be 116%
to 110% lower than the diluted attributable profit per share of the previous
year.
The uncertainty in retail pharmacy has negatively impacted trading in PM&A,
which has recorded a loss for the second six month period.
Shareholders are reminded that the year-on-year growth in earnings will be
impacted by the following:
- UPD, which was acquired by New Clicks with effect from 1 January 2003, was
only included in the corresponding reporting period for eight months, while the
results will be included for the full 12 month period this year.
- The contribution from New Clicks Australia, which was sold in January 2004,
will be included for the four months to 31 December 2003, as opposed to the 12
months in the corresponding reporting period.
New Clicks` results for the year ended 31 August 2004 will be released on SENS
on Thursday, 21 October 2004.
The financial information on which this trading statement is based has not been
reviewed or reported on by the company`s auditors.
Cape Town
11 October 2004
For further information contact:
Tier 1 Investor Relations
Tel: +27 (21) 702-3102
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