DAW - Distribution and Warehousing Network Limited - Trading Statement for the

DAW - Distribution and Warehousing Network Limited - Trading Statement for the  
twelve months ended 30 June 2009                                                
Distribution and Warehousing Network Limited                                    
(Incorporated in the Republic of South Africa)                                  
(Registration number 1984/008265/06)                                            
Share code: DAW & ISIN code: ZAE000018834                                       
("Dawn" or "the Company")                                                       
Trading Statement for the twelve months ended 30 June 2009                      
In accordance with paragraph 3.4 (b) of the Listings Requirements of the JSE    
Limited, shareholders are advised that the Company`s headline earnings per share
for the twelve months ended 30 June 2009, is expected to be 30% to 40% lower    
than the reported headline earnings per share for the prior comparative period. 
Earnings per share are expected to be 40% to 50% lower than the reported        
earnings per share for the prior comparative period.                            
Results drivers                                                                 
The past six months have been characterised by a further tightening of general  
trading conditions as well as the effect of delayed spending from the elections 
and reduced trading days, which affected April`s performance. Against these     
factors, Dawn maintained positive growth in revenue for the year under review.  
Performance in building related activities, Dawn`s traditional businesses,      
continued to show some resilience over the past six months, against the         
background of a sharp decline in recorded building activities, mainly supported 
by a continuation of demand in the building refurbishment and upgrade sector,   
most of which is unrecorded.                                                    
Operating profit before a fair value adjustment of an investment is expected to 
be 20% to 30% lower than the reported operating profit for the prior comparative
period.                                                                         
The main impacts on the decline in headline earnings per share resulted from the
following three factors:                                                        
*    Continued delays and non-awarding of tenders, specifically in government   
    spend on water in sewer related projects. This severely affected the        
performance of Incledon and DPI. Targeted programmes resulted in increased  
    market share in trading and engineering products.                           
*    The impact of the downturn in demand from the European market on the       
    performance of the predominant export-based acrylic products division was   
compounded by difficulties experienced with export quality and recovery.    
    Steps are in progress to reposition this business for the local market.     
*    Increased funding cost, driven mainly by higher average rates of funding   
    during the period.                                                          
Earnings per share were further affected by a fair value adjustment on an       
investment.                                                                     
The industries in which Dawn operates have been affected by ongoing destocking  
throughout most of the period, mainly due to a decline in resource prices and   
the resultant deflationary impacts on revenue and margins of stockists. The     
prices of copper, steel and PVC are however on the rise, which is expected to   
support increased demand when restocking occurs in the industry`s supply chain. 
Whilst no meaningful recovery is expected from building related activities      
before the start of the new calendar year, the lower interest rate environment  
should contribute to an improvement in consumer confidence and the general      
trading environment. With the successful conclusion of the election and settling
down and positioning of central and local government decision making powers, it 
is anticipated that government spending on water and sewer, as well as housing  
projects will support increased demand in this sector over the next financial   
year.                                                                           
Dawn will benefit from the lower cost of funding, both through the reduction of 
interest rates. The group is well positioned to benefit from increased trading  
volumes on the back of anticipated improvement in trading conditions, mainly    
from the second half of the new financial year.                                 
The financial information on which this trading statement is based has not been 
reviewed by the Company`s auditors. The Company`s results will be released on or
about 8 September 2009.                                                         
Johannesburg                                                                    
2 July 2009                                                                     
Sponsor                                                                         
Deloitte & Touche Sponsor Services (Pty) Limited                                
Date: 02/07/2009 15:18:01 Supplied by www.sharenet.co.za                     
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