ERM
ERM
ERM - Update To Trading Statement
Enterprise Risk Management Limited
(Incorporated in the Republic of South Africa)
(Registration number 1995/001603/06)
JSE Code: ERM ISIN: ZAE000037701
("ERM" or "the Company")
UPDATE TO TRADING STATEMENT RELEASED ON 7 MARCH 2006
Further to the trading statement which was released on the Securities Exchange
News Service ("SENS") on 7 March 2006, it has come to the attention of the
Company during the course of the audit, which is currently underway, that the
range reported for headline earnings per share, in the 7 March 2006
announcement, in respect of the financial year ended 28 February 2006 ("the
reporting period") was incorrectly reported as being the same amount as that
reported for earnings per share. The 7 March 2006 announcement reported earnings
and headline earnings per share as both being between 27 and 31 cents per share
in respect of the reporting period. Headline earnings per share will now be in
the range of 4.8 and 5.6 cents in respect of the reporting period.
The difference results from a transfer from a fair value equity reserve ("equity
reserve") to income which was not excluded from headline earnings and is
explained in more detail below.
Due to a change in accounting policy with regards to available for sale assets,
an amount of R8.9 million which formed part of retained income in respect of the
year ended 28 February 2005,("the prior comparative period"), was transferred
into the equity reserve during the course of the reporting period.
There was a further mark to market increase which was also transferred to the
equity reserve during the reporting period, of R15.1 million. Following the
disposals of certain assets available for sale during the reporting period, an
amount of R15.9 million (before taxation) was transferred from the equity
reserve to the income statement.
The R15.9 million (after taxation) was not excluded from the determination of
headline earnings per share in the 7 March 2006 announcement.
After taking account of the R15.9 million (after taxation), ERM will be
reporting earnings of between 27 and 31 cents per share as reported in the 7
March 2006 announcement, and headline earnings will be between 4.8 and 5.6 cents
per share in respect of the reporting period, compared to IFRS adjusted earnings
and headline earnings of 0.3 cents per share, in the prior comparative period.
The results in respect of the reporting period are currently in the process of
being audited by the Company"s auditors, and are expected to be finalised and
published on SENS on or about 30 April 2006.
Randburg
10 April 2006
Sponsor
Grant Thornton Corporate Finance (Proprietary) Limited
Date: 10/04/2006 05:10:12 PM Produced by the JSE SENS Department
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