Illovo Sugar Limited - Trading Statement
ILLOVO SUGAR LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1906/000622/06)
Share Code: ILV
ISIN: ZAE000003547
(`Illovo` or `the company`)
Trading Statement
This statement is issued in compliance with the Listings Requirements (Section
3.4(b)) of the JSE Limited.
In terms of established practice, Illovo issues financial statements for the
first six months of its financial year which reflect both actual results based
on International Financial Reporting Standards and, because the sugar industry
is a seasonal agriculturally based business, results which are determined on a
sugar season basis. It is the directors` opinion that the results determined on
a sugar season basis provide a better basis for evaluating the financial
performance of the company.
Illovo`s results are considerably impacted by the level of the rand compared to
other currencies, particularly the US dollar, and by the world price of sugar.
Shareholders are advised that due to a number of factors, including rand
realisations to-date, the marked improvement in the world sugar price, increased
sugar production (after taking account of the sale of the Umfolozi sugar
factory), improved domestic sales, and the positive impact of restructuring of
the South African operations, it is anticipated that actual headline earnings
per share (`heps`) and earnings per share (`eps`) for the six months ending 30
September 2005 will be between 190% and 210% higher than for the corresponding
period last year.
However, this forecast of very strong growth in actual earnings for the first
six months is due largely to certain unique circumstances pertaining to the
relevant periods, and the directors are of the opinion that the forecast
increase in earnings on a sugar season basis provides a better basis for
evaluating the financial performance of the company.
On a sugar season basis, after taking into account the improved world sugar
market, the increased production, the restructuring benefits, and the present
rand realisations and forward cover arrangements, and assuming the value of the
rand continues at around its present level, heps and eps for the six months
ending 30 September 2005 are expected to be between 85% and 105% above those
achieved in last year`s corresponding period.
For the full year to 31 March 2006, subject to the value of the rand continuing
at around its present level, a reasonable degree of certainty exists that heps
and eps will be between 60% and 80% higher than in the previous financial year.
(It should be noted that for the full year, there is no difference between
actual results and those determined on a sugar season basis.)
The forecast financial information on which this trading statement is based has
not been reviewed or reported upon by the company`s auditors.
Mount Edgecombe
14 September 2005
Sponsor:
J.P.Morgan Equities Limited
Date: 14/09/2005 05:01:34 PM
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