Howden Africa Holdings Limited - Trading Statement
Howden Africa Holdings Limited - Trading Statement
HOWDEN AFRICA HOLDINGS LIMITED
(Incorporated in Republic of South Africa)
(Registration Number 1996/002982/06)
Share Code: HWN ISIN: ZAE000010583
(`HAHL` or `the Company`)
Trading statement
In April 2004, Howden was awarded a contract worth R17.4m to supply a rotary
drier plant to Libya. Howden has recently encountered difficulties in the
execution of this contract inasmuch as it appears the customer will not meet its
contractual obligations and accordingly R 5.3 million in costs associated with
this contract have now been written off. The impact of this will be to reduce
earnings per share by 5.8 cents for the six months ended 30 June 2005. All
practical steps will be taken to effect recovery of these monies and to mitigate
the charge and any significant change in this position will be communicated
accordingly.
In March 2004, Howden paid a special dividend of 47 cents per share, which
carried an STC charge of 5.9 cents per share. The Company is not intending to
pay a further dividend before June 2005, and the tax charge for the six months
to June 2005 will not bear any corresponding STC charge.
The net effect of both these issues for the half year to June 2005 is that
earnings per share and headline earnings per share are forecast to increase by
between 60-80% above the corresponding period in 2004, although, if the effects
of the STC, in respect of the half year to June 2004, are ignored, the earnings
per share and headline earnings per share remain similar between the two half
years.
The above information has not been reviewed or reported on by the Company`s
auditors. The Company`s results for the interim period ending 30 June 2005 are
expected to be published on or about 29 August 2005.
9 June 2005
Sponsor
PricewaterhouseCoopers PricewaterhouseCoopers
Corporate Finance (Pty) Ltd
(Registration number 1970/003711/07)
Date: 09/06/2005 03:16:23 PM
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