| Thu 10 Feb 2005, 15:53 | | Venfin Limited - Trading Statement and change to f |
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Venfin Limited - Trading Statement and change to functions of Directors
VenFin Limited
(Incorporated in the Republic of South Africa)
(Registration number 1948/031037/06)
ISIN: ZAE000026498
Share code: VNF
(`VenFin` or `the Company`)
TRADING STATEMENT AND CHANGE TO FUNCTIONS OF DIRECTORS
VenFin is currently finalising its results for the six months ended 31 December
2004, which is due to be released on 7 March 2005. In this regard, shareholders
are advised that headline earnings per share (`HEPS`) is likely to be 15% - 25%
higher than the six-month reporting period of the previous financial year.
Shareholders are further advised that, subsequent to the approval of the
Alexander Forbes Limited transaction, details of which was disclosed in the 2004
final results announcement on SENS, dated 7 September 2004, Alexander Forbes
became an associated company of VenFin. For the current six-month period ended
31 December 2004, VenFin has equity accounted its 25% interest in Alexander
Forbes for one month to 30 September 2004, the financial year-end of Alexander
Forbes, and not up to 31 December 2004, as would normally be the case with
unlisted associated companies. Therefore the contribution of the investment in
Alexander Forbes to VenFin`s HEPS is not comparable with the six-month period
ended 31 December 2003.
Furthermore, the earnings per share (`EPS`) is likely to be 200% - 220% higher
than the corresponding six-month period, mainly due to the application of
AC140:Business Combinations, which states that, inter alia, goodwill shall no
longer be amortised, as well as lower impairment charges during the current
interim period.
Shareholders are further advised that VenFin will, in future, only be adopting
HEPS and not EPS as the relevant criteria for trading statement purposes. The
board is of the view that, being an investment holding company, VenFin often has
once-off items in the income statement that do not reflect the continued
performance of the underlying investments.
An announcement will be made on SENS in the event that the board decides to
reinstate EPS as one of the relevant criteria for trading statement purposes.
The forecast financial information on which this trading statement is based has
not been reviewed and reported on by the Company`s auditors.
Change to functions of directors
In compliance with the JSE Securities Exchange South Africa Listings
Requirements, the following information is disclosed:
Mr. J Malherbe, the Chief Executive Officer of VenFin, is no longer acting as
the Deputy Chairman. With effect from 2 February 2005, Mr. J E Newbury, an
independent non-executive director, fulfils this role.
Stellenbosch
10 February 2005
Merchant Bank and Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
CORPORATE FINANCE
Date: 10/02/2005 03:40:03 PM
Produced by the JSE SENS Department
