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ITE - Italtile - Trading statement
Italtile Limited
(Incorporated in the Republic of South Africa)
(Registration number 1955/000558/06)
ISIN: ZAE000003679
Share code: ITE
("Italtile" or "the group")
TRADING STATEMENT
In terms of the JSE Limited Listings Requirements, 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 be more than 20%
different from that of the previous corresponding period.
In light of the aforementioned requirements, Italtile expects to announce an
improvement in Profit before Tax of between 20% and 22% for the six months ended
31 December 2006. Earnings per Share and Headline Earnings per Share will
reflect an improvement of between 22% and 26% over the prior comparative period.
As the leading multifaceted tile and bathware retailer in South Africa, the
group benefited from the sustained positive trading environment experienced by
the building materials sector. Consumers continued to embrace the philosophy
that the acquisition and improvement of homes is a prudent asset investment,
which served as a strong growth driver and diminished the impact of interest
rate increases.
The group`s Italtile and CTM brands which cater across the market spectrum from
cash and carry to premium end, enjoy strong consumer loyalty. The roll-out of
an Emporium store model affording a broader one-stop-shop offering has been well
received by the target market, whilst improved access to formal housing by
greater numbers of first time consumers positively impacted on the entry level
segment of the business.
Benefits of investment in the group`s supply chain began to flow through during
the period. Reduced reliance on third-party vendors and enhanced efficiencies
improved profitability. Further gains should be realised over time.
Shareholders are advised that the above information has not been reviewed or
reported on by Italtile`s external auditors. The company`s results for the six
months ended 31 December 2006 are expected to be released on or about 07
February 2007.
Johannesburg
23 January 2007
Sponsor
Nedbank Capital
Date: 23/01/2007 09:00:01 Produced by the JSE SENS Department.
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