VLE
VLE
VLE - Value Group - Trading Update
Value Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1997/002203/06
Share code: VLE
ISIN code: ZAE000016507
("Value" or "the company")
Trading update
In terms of the listings requirements of the JSE Limited, a company is required
to publish a trading update as soon as it becomes reasonably certain that the
financial results for the period to be reported on next will show a 20% or more
difference from the previous corresponding period.
During the last six months, increased and varied volumes and associated changes
to customer distribution patterns necessitated additional investment in
infrastructure costs. Consequently, these costs were not reflected and recovered
in the existing rates structures and therefore had a material impact on margins.
In addition, as highlighted in the interim report, interest rate hikes,
smoothing of lease costs, the volatile diesel price and the implementation of a
new IT system had an adverse effect on the company`s cost base. Accordingly,
shareholders are advised that headline and basic earnings per share for the
current financial year ending 28 February 2007 will be 40% to 60% less than that
of the previous corresponding period. Management is in the process of reviewing
and addressing all costs and distribution rates to counteract the effect of the
above and return the company to previous profitability levels.
The financial results on which this trading update has been based, have not been
reviewed nor reported on by Value`s auditors. The results for the year ended 28
February 2007 will be published on or about 22 May 2007.
Johannesburg
23 January 2007
Sponsor: Investec Limited
Date: 23/01/2007 17:30:02 Produced by the JSE SENS Department.
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