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VUN - Vunani - Trading Statement And Renewal Of Cautionary Announcement VUNANI LIMITED (Incorporated in the Republic of South Africa) (Registration number 1997/020641/06) JSE code: VUN ISIN: ZAE000110359 ("Vunani" or "the company") TRADING STATEMENT AND RENEWAL OF CAUTIONARY ANNOUNCEMENT Background Vunani is a black-owned and managed financial services company that operates through two divisions, namely Financial Services and Investment Services. Financial Services comprises the asset management, investment banking and property business units. The Investment Services division houses Vunani`s strategic empowerment equity investments ("the investments"). An economic downturn in key sectors in which Vunani has investments was experienced during the period under review, and as a consequence, the market value of those investments declined materially. It is expected that the profit after tax generated by the core Financial Services division (asset management, investment banking and property business units) in respect of the year ended 31 December 2008 will be in line with the previous financial year. However, the Investment Services division will reflect material unrealised negative fair value adjustments due to the substantial decline in the "small-to-mid cap market". The underlying nature of the investments will remain core to the company`s portfolio. Trading statement In terms of the Listings Requirements of the JSE Limited, companies are required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on will differ by at least 20% or more from the financial results for the previous corresponding period. Vunani is currently finalising its results for the year ended 31 December 2008 and expects a loss per share of between 57.3 cents and 70.0 cents and a headline loss per share of between 52.0 cents and 63.5 cents, compared to earnings per share and headline earnings per share of 41.4 and 28.0 cents, respectively, reported for the year ended 31 December 2007. The reduction in earnings is as a result of fair value adjustments against the investments. The financial information on which this trading statement is based has not been reviewed or reported on by the company`s auditors. Debt restructuring The substantial decline in the share prices and valuation of the investments in Investment Services has resulted in certain debt covenant ratios, as set by the providers of debt, being breached. Vunani has entered into negotiations with its banking partners in order to resolve these breaches and is of the reasonable opinion that the negotiations will be successful. Renewal of cautionary announcement Shareholders are referred to the cautionary announcement, dated 12 March 2009, and are advised that the negotiations relating to the debt restructuring may have a material effect on the price of the company`s securities, if successfully concluded. Accordingly, shareholders are advised to continue to exercise caution when dealing in the company`s securities until a further announcement is made. The company`s results for the year ended 31 December 2008 are expected to be released on SENS on or before 31 March 2009. Johannesburg 20 March 2009 Lead Designated Adviser Merchantec (Proprietary) Limited Joint Designated Adviser Vunani Corporate Finance Date: 20/03/2009 16:57:29 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
