Avi Limited - Trading Statement For The Year Ended 30 June 2005
AVI Limited
(Registration number 1944/017201/06)
Share code: AVI
ISIN: ZAE000049433
(`AVI` or `the Group`)
TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2005
During the course of the 2005 financial year, a number of significant
transactions took place which had a material impact on the results of the Group.
These included:
- The sale of Vector Logistics (Proprietary) Limited (`Vector`) on 2 December
2004, which resulted in a capital profit for the Group of R307 million. The
results from this operation will consequently only be included in Group results
for the five months to 30 November 2004.
- The acquisition of the minority interest in Consol Limited (`Consol`) for R526
million which increased the Group`s interest in Consol from 81% to 100% and the
subsequent unbundling and separate listing of Consol on 28 February 2005. As a
result of these transactions the Group will consolidate 81% of Consol`s earnings
for the period 1 July to 10 October 2004 and 100% of Consol`s earnings from 11
October 2004 to 25 February 2005. No further contribution from Consol will be
recognised after this date.
- The decision to divest from I&J`s pelagic fishing operation. The results from
this operation have consequently been reclassified as discontinued and the prior
year results will be restated accordingly.
In compliance with paragraph 3.4 of the Listings Requirements of the JSE Limited
(`JSE`), listed companies are required to publish a trading statement as soon as
they are reasonably certain that the financial results for the current reporting
period will differ by more than 20% from those reported in respect of the
previous corresponding period.
Taking into account the restructuring of the Group and the trading results, the
board of directors (`the board`) of AVI have determined that it would be
appropriate to also provide relevant information on the results of the
continuing operations of the Group in addition to the guidance required in terms
of the Listings Requirements of the JSE.
The board therefore advises shareholders that:
- Consolidated Group earnings per share for the year ended 30 June 2005 are
expected to reflect an improvement of between 45% and 55% after taking account
of the profit on sale of Vector;
- Consolidated Group headline earnings per share are expected to decline between
0% and 10% following the unbundling of Consol and the sale of Vector; and
- Diluted headline earnings per share for the continuing operations of the Group
are expected to increase between 15% and 25% for the year.
Considering the extent and complexity of the changes in the structure of the
Group and the impact of the adoption of IFRS, guidance is provided in the table
below on the diluted headline earnings per share figure for the prior year,
against which the expected movements referred to above can be assessed.
PRO FORMA DHEPS FOR THE YEAR ENDED 30 JUNE 2004
cps
Continuing operations 88.5
Discontinued operations 96.5
Group 185.0
The information above has not been reviewed and reported on by the Group
auditors.
It is expected that AVI will release its results for the year ended 30 June 2005
on 7 September 2005.
Chislehurston
Sandton
19 August 2005
Sponsor
Standard Bank
Enquiries
Angus Band Tel: +(27) 11 779 2703
Group managing director
Rob Katzen Tel: +(27) 11 779 2704
Group financial director
Sam Denoon-Stevens Tel: +(27) 11 779 2721
Investor relations officer
Date: 19/08/2005 11:25:31 AM
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