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HAH - COMPANY ANNOUNCEMENT

Release Date: 12/06/2003 16:19
Code(s): HWN
Wrap Text

HAH - COMPANY ANNOUNCEMENT HOWDEN AFRICA HOLDINGS LIMITED (Registration number : 1996/002982/06) Share Code: HWN ISIN Code: ZAE 000010583 ("HAH" or "the Company") COMPANY ANNOUNCEMENT At the Company"s Annual General Meeting held today at 12h00, at 1A Booysens Road, Booysens, Johannesburg the Chairman Mr J S Feek made the following statement; After 5 months trading in the current financial year, I am sure that shareholders would wish to be updated on the progress that the Group is making. The Business environment and markets in which the Group operates in South Africa have remained sound. The continuing strength of the Rand, however will affect South African resource based industries and exports and we must expect that future projects and expansion could be delayed or deferred. We therefore remain cautious in terms of the outlook for the full year. Our appraisal of the various operations continues and as reported recently through the JSE, the Group has disposed of its interests in the wholly owned subsidiary Hertz Technologies; in this instance the acquirer is Mandlakazi Engineering Holdings (Pty) Ltd, an empowerment Group, who"s credentials will compliment the Hertz marketing efforts. Off shore activities are being closely monitored and Engart Inc. is establishing its presence in the environmental market in the United States and is steadily building up a useful reference list. Export markets generally continue to be difficult due to the global economic environment and currency movements. Exceptional exchange losses totalling R7.2m were recognised in the consolidated income statement for the year to 31 December 2002. These charges arose on foreign currency denominated intercompany loans to the offshore companies. In the event that the exchange rates remain at their present levels, at the half year, this would result in a further exceptional exchange loss of R1,9m. In anticipation of the question concerning the resumption of dividends to shareholders, may I confirm that the board will adopt a conservative approach. The board consideration and deliberation will encompass the forward economic environment and its impact on both present and future cash flows and earnings. Sponsor PricewaterhouseCoopers Corporate Finance (Pty) Ltd Date: 12/06/2003 04:19:23 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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