DSY
DSY
Discovery - Further Announcement: BEE Transaction and voluntary Trading Update
Discovery Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1999/007789/06)
(Share code: DSY & ISIN: ZAE000022331)
("Discovery" or "the Company")
FURTHER ANNOUNCEMENT IN RESPECT OF THE BLACK ECONOMIC EMPOWERMENT TRANSACTION
AND VOLUNTARY TRADING UPDATE
FINANCIAL IMPACT OF THE BLACK ECONOMIC EMPOWERMENT ("BEE") TRANSACTION
Shareholders are referred to the SENS announcement published on 8 December 2005,
wherein the financial effects of the BEE transaction as reported in terms of
International Financial Reporting Standards ("IFRS") were disclosed. In
particular, the IFRS impact of the BEE transaction, which was estimated to be
approximately R190 million in the six months ending 31 December 2005.
Subsequent to the announcement dated 8 December 2005, the quantification of this
charge has been revisited and shareholders are advised that an amount of R144
million will be reflected as a charge in the income statement of Discovery for
the six months ended 31 December 2005.
TRADING UPDATE
Discovery is currently finalising its results for the six months ended 31
December 2005, which will be released on 23 February 2006. Shareholders are
advised that earnings per share and headline earnings per share, after taking
into account the IFRS impact of the BEE transaction, are expected to be between
0% and 20% lower than the corresponding reporting period of the previous year.
Excluding the effects of the BEE transaction, as described above, earnings per
share and headline earnings per share are expected to be between 60% and 70%
higher than the corresponding reporting period of the previous year, driven by
strong investment returns and a lower effective tax rate. Despite disappointing
results from Destiny Health, operating profit before investment income and the
effect of the IFRS adjustments, is expected to increase by between 15% and 20%,
driven by strong local earnings.
The forecast financial information on which this trading statement is based has
not been reviewed and reported on by the Company"s auditors.
Sandton
17 February 2006
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 17/02/2006 08:27:03 AM Produced by the JSE SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
