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Fri 22 Apr 2005, 11:32 Honneysett defends his sale of New Clicks shares
Honneysett defends his sale of New Clicks shares

 
By Dirk De Vynck

Trevor Honneysett, the group leader of New Clicks, yesterday defended the sale in January of a large chunk of his shareholding in the holding company of healthcare and beauty products retailer Clicks.

He said he did not know at the time of the sale that the company was going to report reduced profits for the six months to February.

Honneysett`s remarks follow an article in Business Report earlier this month which said the company might have misled investors by telling them in January that sales for the first four months of the 2005 financial year were up 25 percent.

On April 6 New Clicks warned shareholders that diluted earnings a share for the first half of the year would be between 14 percent and 19 percent lower than a year earlier.

Honneysett and New Clicks chairman David Nurek sold shares after the January announcement. Business Report quoted a shareholder as saying the bullish January update was misleading as it `entitled the market to assume profits were at least moving in the same direction as turnover.`

Management should have been aware of the negative factors that would affect profit for the full six months, the shareholder said.

Honneysett said yesterday that by January he had only had insight into the group`s management accounts for the first three months of the 2005 financial year, which started in September, as well as a sales flash of the December sales. He noted that these showed that the performance of the group was still on track.

The notice to the JSE Securities Exchange setting out Honneysett`s share dealings from a family trust at the end of January said the shares were sold to repay debt.

`I am comfortable that I went through the right procedures,` Honneysett said, adding that he took no profit on the sale of the shares and that he actually had to pay money in because of capital gains tax.

`I have maintained the rest of my shareholding, currently in excess of R6.4 million in value.`


Published on the web by Business Report on April 22, 2005. 
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