Delta EMD Limited
(Incorporated in the Republic of South Africa)
Registration number 1919/006020/06
Share code: DTA
(?Delta EMD? or ?the Group?)
TRADING UPDATE AND TRADING STATEMENT FOR THE YEAR ENDED 27 DECEMBER
Shareholders are referred to the Group?s statement of unaudited
results for the six months ended 27 June 2016 released on the Stock
Exchange News Service (?SENS?) on 12 September 2016.
As reported previously, the salvage and sale of the plant and
equipment formerly located at the Group?s Nelspruit plant site are
complete and payment has been received for those assets. Efforts to
market and sell the Nelspruit plant site continue.
The Nelspruit plant site includes a parcel of land historically
leased by Delta EMD. That parcel was purchased and transferred to
Delta EMD during December 2016 and payment for the parcel was made
following year end. That parcel will be included in an eventual sale
of the plant site.
The remediation required under the environmental remediation order
continues, and the second bi-annual report was submitted to the
Department of Environmental affairs during December 2016.
Paragraph 3.4 (b) of the Listings Requirements of the JSE Limited
requires companies to publish a trading statement in the event that
they are satisfied with a reasonable degree of certainty that the
earnings per share and headline earnings per share for the period to
be reported on next will differ from the previous corresponding
reporting period by at least 20%.
Delta EMD is currently finalising its results for the year ended 27
December 2016 (?the period?). Shareholders are advised that Delta EMD
expects a profit per share for the period, as opposed to the loss per
share of 85.2 cents reported for the previous corresponding reporting
period. Earnings per share is expected to be between 25 cents and 30
cents, representing an expected improvement of more than 100% from
the previous corresponding reporting period.
Delta EMD also expects a headline profit per share for the period, as
opposed to the headline loss per share of 105.3 cents reported for
the previous corresponding reporting period. Headline profit per
share for the period is expected to be between 25 cents and 30 cents,
representing an expected improvement of more than 100% from the
previous corresponding reporting period.
The expected profit was realised through interest income, a part
reversal of the environmental remediation provision resulting from
revised cost estimates for the work still required by the remediation
order, and a part reversal of the retention incentive provision.
Delta EMD?s results for the year ended 27 December 2016 are expected
to be released on SENS before the end of February 2017.
The forecast financial information on which this trading statement is
based has not been reviewed and reported on by the Group?s external
27 January 2017
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Date: 27/01/2017 09:27:00 Supplied by www.sharenet.co.za
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