JSE LIMITED - Trading Statement

Trading Statement

JSE LIMITED 

(Incorporated in the Republic of South Africa) 

(Registration number: 2005/022939/06) 

Share Code: JSE 

ISIN Code: ZAE000079711 

(JSE or the Group) 

 

TRADING STATEMENT 

 

Stakeholders are advised that headline earnings per share (HEPS) of 
the Group for the half year ended 30 June 2012 (the period) are 
expected to be between 10% and 20% lower than the HEPS of 288.9 cents 
per share for the half year ended 30 June 2011 (the comparative 
period). Earnings per share (EPS) are expected to be between 56% 
and 66% lower than the 299.0 cents per share of the comparative 
period. 

 

HEPS and EPS for the Group for the period have been impacted by 
factors (before tax), including: 

 

* 	the impact of impairing the Market Services Solution (MSS) and 
	its associated software within the Systems Replacement Project 
	(SRP) following the technical recommendation earlier this year 
	that it would need to be rewritten. This amounted to R72.6m. 
	Deferred tax on the accumulated impairments amounting to R40.5m 
	and the non-deductibility of the impairment (R20.3m) increased the 
	taxation charge. The tax treatment of the software development 
	costs is currently being investigated and may impact the taxation 
	charge going forward; 


 

* 	the decision not to complete MSS which resulted in the deployment 
	of staff from capital projects to operations. These salary costs 
	were expensed rather than capitalised (2012: approximate 
	capitalisation R23.9m; 2011: approximate capitalisation R36.1m); 


 

* 	early retirement payments made to senior staff of R6.2m 
	(2011:Rnil); 


 

*	 the writing back of approximately R7.3m in bonuses withheld in 
	2011 pending a decision on the way forward on SRP and now 
	forfeited as a result of the decision to impair MSS (2011:Rnil). 
	As a result, executives during 2011 will receive no part of the 
	retained bonus. 


 

Stakeholders are advised that the information provided in this 
trading statement has not been reviewed and reported on by the 
Groups external auditors. 

 

Gary Clarke 

Group Company Secretary 

 

Sandton 


10 August 2012 

 

Sponsor 

RAND MERCHANT BANK (A division of FirstRand Bank Limited) 



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