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PPC - Trading Statement and cautionary announcement in terms of Paragraph 3.4

Release Date: 14/10/2003 12:00
Code(s): PPC
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PPC - Trading Statement and cautionary announcement in terms of Paragraph 3.4 (b) of Listing Requirements Pretoria Portland Cement Company Limited ("PPC" or "the company") (Registration number 1892/000667/06) JSE code: PPC ISIN code: ZAE 000005559 Trading Statement in terms of Paragraph 3.4 (b) of Listing Requirements In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Securities Exchange South Africa, PPC is required to issue a statement should its financial results be expected to be materially different from those of the prior comparable period. In the interim results announcement for the period ended 31 March 2003, released on 14 May 2003, the company commented that it "is expecting to report increased operating profits and cash flows for the full year" and that "the year on year increase in the second half is however likely to be lower than that achieved in the first half". Domestic cement demand has been buoyant and accordingly year on year growth in sales volumes has been stronger than anticipated. Accordingly, PPC advises that its headline earnings and earnings before exceptional items for the year to end September 2003 are expected to be substantially above those for the previous year. At the same time, PPC draws attention to the fact that subsidiary company Portland Holdings Limited Zimbabwe ("Porthold") operates in a hyperinflationary economy and accordingly PPC applies IAS 29 (Financial Reporting in Hyperinflationary Economies). Comparative results will therefore be restated and translated to Rands at the rate of exchange ruling on 30 September 2003. The effect of the restatement will be to increase: Net profit attributable to PPC shareholders for 2002 by R4,7 million from R600,3 million to R605,0 million. Headline earnings per share for 2002 by 8,8 cents from 829,5 to 838,3. Commenting on the restatement, Group Financial Director, Peter Nelson said "that it was a normal requirement of IAS 29 and that it arose because the losses reported by Porthold were being adjusted in line with current inflation and exchange rates to provide a meaningful comparative result. The fact that the Zimbabwe dollar had depreciated more than inflation, effectively reduces the comparative period loss for Porthold, thereby increasing the comparative period net income of PPC." Cautionary announcement The contents of the trading statement have not been reviewed by a reporting accountant. Shareholders are therefore advised to exercise caution when trading in their PPC shares, until the financial results for the year ended 30 September 2003 are released on 7 November 2003. Enquiries: Pretoria Portland Cement Company Limited Peter Nelson Tel: +27 11 488 1892 Financial Director Sponsor Cazenove Date: 14/10/2003 12:00:03 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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