Cullinan Holdings Limited - Trading Statement

Cullinan Holdings Limited - Trading Statement                                   
Cullinan holdings limited                                                       
(Incorporated in the Republic of South Africa)                                  
(Registration number 1902/001808/06)                                            
Share code: CUL & ISIN: ZAE000013710                                            
("the company")                                                                 
Trading statement                                                               
Shareholders are advised that the profit before tax for the financial year ended
30 September 2005 is expected to be approximately 5% less than that for the     
comparable period last year.                                                    
Headline earnings per share for the year ended 30 September 2005 are expected to
be 25 to 35% lower than those for the corresponding period last year, while     
earnings per share will decline by 40%.  The primary cause of the declines is   
the necessity of making a provision for taxation in terms of South African      
Statements of Generally Accepted Accounting Practice (GAAP). The accounts of the
company will therefore reflect a taxation charge of approximately 30% that will 
reduce the attributable and headline earnings.                                  
It should be noted that this provision for taxation is a non-cash charge to the 
income statement as the company presently has an assessed loss.  It is          
anticipated that it will take two financial years for this loss to be fully     
utilised.                                                                       
The increased decline in earnings over headline earnings results from income of 
R3 million accounted for in 2004 in the creation of a deferred tax asset.       
Impact of AC 105 in respect of operating leases                                 
In prior years, operating lease payments were recognised in the income statement
in the year incurred. Guidance by the South African Institute of Chartered      
Accountants, Circular 7/2005 issued in August 2005, requires minimum lease      
payments that are subject to fixed escalations to be spread over the life of the
lease instead of as incurred.                                                   
                                                      R"000                     
The adjustments resulting from the restatement can                              
be summarised as follows:                                                       
Increase of 2003 accumulated loss opening balance     (2,394)                   
Recognition of deferred operating lease cost accrual:                           
Increase of 2004 net profit                            171                      
Increase of 2005 net profit                            623                      
                                                      ------                    
Deferred operating lease income accrual 2005          (1,600)                   
                                                      ------                    
The increase in earnings and headline earnings per share is:                    
                              2004    2005                                      
Cents per share:              0.02*     0.06*                                   
* Based on 718,188,538 shares in issue.                                         
This financial information has not been reviewed and reported on by the auditors
of the company.                                                                 
By order of the board                                                           
Johannesburg                                                                    
16 November 2005                                                                
Sponsor                                                                         
LPC Manhattan Moela (Proprietary) Limited                                       
(Registration number 2001/009215/07)                                            
Date: 17/11/2005 07:05:36 AM Supplied by www.sharenet.co.za                     
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