Sharenet Sites 
Sharenet Sites
HUG - Huge Group Limited - Pro Forma Financial Effects and Withdrawal of Cautionary HUGE GROUP LIMITED (Registration number 2006/023587/06) Share code: HUG & ISIN: ZAE000102042 ("Huge" or "the Company") PRO FORMA FINANCIAL EFFECTS AND WITHDRAWAL OF CAUTIONARY Further to the announcements dated 16 March 2009 and 17 March 2009 respectively, relating to the purchase of Single Stock Futures ("SSF`s") and Contracts for Difference ("CFD`s) as well as the cautionary announcements dated 30 March 2009 and 21 May 2009 respectively, the pro forma effects of the purchase of the SSF`s and CFD`s on the reviewed results of Huge, as well as the pro forma effects of any future repurchase of the underlying securities is set out below. For purposes of the income statement, the purchase of the SSF`s and CFD`s has been assumed from 01 March 2008 and for purposes of the balance sheet, the purchase has been assumed with effect from 28 February 2009. The pro forma financial effects, which are the responsibility of the directors, have been prepared for illustrative purposes only and, due to their nature, may not fairly present Huge`s financial position, changes in equity, results of operations or cash flows. These pro forma effects have been reviewed by the auditors of the company, Horwath Leveton Boner whose report is available for inspection at the Company`s registered office. Shareholders are also advised that a circular to shareholders is currently being drafted in relation to, inter alia, the specific authority to repurchase the underlying securities in relation to the above SSF`s and CFD`s. Pro forma effects of the Transactions Pro forma
Consolidated Income results prior to Statement for the acquisition Acqui- Acqui- year ended of the SSF`s sition of sition of 28 February 2009 and CFD`s the CFD`s Note the SSF`s Revenue 605 848 155 Gross profit 125 930 913 Other income 3 563 103 Operating costs (82 412 897) Trading profit from operations 47 081 119 Fair value write down on derivatives - 7 686 704 1b 17 881 162
Table continues:... Published Reviewed Share results buy
28 back February iro the SSF`s Note 2009 Note Note
605 848 155 125 930 913
3 563 103 (82 412 897) 47 081 119
1a (25 567 866) Earnings before interest, taxation, 47 081 119 7 686 704 17 881 162 depreciation & amortisation Depreciation (19 488 945) Interest paid (2 659 019) 1 160 603 2b 2 708 073 Interest income 6 205 310 Earnings from 2 641 740 associates Net income before taxation 33 780 205 8 847 307 20 589 235 Taxation (5 148 853) (2 477 426) 3b (5 764 986) Attributable 28 631 352 6 369 881 14 824 249 earnings Basic earnings per share (cents) 26.25 Headline earnings per share (cents) 26.28 Dividends 12 Total number of shares in issue 106 167 (`000) Weighted number of shares in 109 089 issue (`000) Table continues:...
21 513 253 - (19 488 945) 2a (6 527 695) 6 205 310 2 641 740
4 343 663 - 3a 3 093 559 7 437 222 -
6.82
6.85 12.00 106 167 5a (8 405) 5b
109 089 5a (8 405) 5b Pro forma Share effects after
Consolidated Income Statement buy the 28 February 2009 (Continued ......) back purchase of iro the the CFD`s shares
Revenue 605 848 155 Gross profit 125 930 913 Other income 3 563 103 Operating costs (82 412 897) Trading profit from operations 47 081 119 Fair value write down on derivatives (25 567 866) Earnings before interest, taxation, 21 513 253 depreciation & amortisation Depreciation (19 488 945) Interest paid (6 527 695 Interest income 6 205 310 Earnings from associates 2 641 740 Net income before taxation 4 343 663 Taxation 3 093 559 Attributable earnings 7 437 222 Basic earnings per share (cents) 7.68 Headline earnings per share (cents) 7.73 Dividends 12 Total number of shares in issue (`000) 93 858 Weighted number of shares in issue (`000) 96 780 Pro forma results prior to Consolidated Balance acquisition Acqui- Sheet at of the SSF`s sition of 28 February 2009 and CFD`s the CFD`s Note Assets Property, plant and equipment 59 368 404 Investments 14 027 925 Deferred tax 1 410 504 (2 477 246) 3b Intangible assets 216 437 490 Current assets Inventory 28 720 934 Accounts receivable 81 126 621 (6 247 326) 4b Loans receivable 1 124 364 Receivable margin call payments - (7 686 704) 4b Bank and cash 55 352 302 15 094 633 Bank and cash 13 785 144 Bank and cash - Bank and cash 3 868 676 1 160 603 2b Bank and cash 25 567 866 7 686 704 4b Bank and cash 12 130 616 6 247 326 4b Total assets 457 568 544 (1 316 643) Equity and liabilities Issued share capital 228 832 973 Reserves 41 510 170 6 370 061 Reserves 20 315 860 - Reserves 25 567 866 7 686 704 1a Reserves 3 868 676 1 160 603 2a Reserves (8 242 232) (2 477 246) 3a Non-current liabilities 21 105 180 Current liabilities Other financial 28 760 015 liabilities Accounts payable 133 795 670 Derivative liability - (7 686 704) 1b Shareholders for 14 952 dividend Provision for taxation 3 549 584 Total equity and 457 568 544 (1 316 643) liabilities Number of shares in issue (`000) 106 167 Net asset value per share (cents) 273.78 Net tangible asset value per share (cents) 69.91 Table continues:... Published Reviewed Acqui- results sition of 28 February the SSF`s Note 2009 Note 59 368 404
14 027 925 (5 764 986) 3a 9 652 736 216 437 490
28 720 934 (5 883 290) 4a 93 257 237 6a 1 124 364
(17 881 162) 4a 25 567 866 6a 26 472 525 13 785 144 13 785 144 - 6a
2 708 073 2a - 17 881 162 4a - 5 883 290 4a - (3 056 913) 461 942 100 228 832 973 6a 14 824 249 20 315 860 - 20 315 860 17 881 162 1a - 7a 2 708 073 2a - (5 764 986) 3a - 21 105 180 28 760 015
133 795 670 (17 881 162) 1a 25 567 866 7a 14 952 3 549 584
(3 056 913) 461 942 100 106 167 5a
234.67 30.81
Pro forma Consolidated Balance Share buy Share buy effects after Sheet at back iro back iro the purchase 28 February 2009 the SSF`s Note the CFD`s of the (Continued. .....) shares Assets Property, plant and 59 368 404 equipment Investments 14 027 925 Deferred tax 9 652 736 Intangible assets 216 437 490 Current assets Inventory 28 720 934 Accounts receivable (5 883 290) 6b (6 247 326) 81 126 621 Loans receivable 1 124 364 Receivable margin call (17 881 162) 6b (7 686 704) - payments Bank and cash (6 624 762) 7 160 382 Bank and cash 13 785 144 Bank and cash (6 624 762) (6 624 762) Bank and cash - Bank and cash - Bank and cash - Total assets (30 389 214) (13 934 030) 417 618 856 Equity and liabilities Issued share capital (30 389 214) 6b (13 934 030) 184 509 729 Reserves 17 881 162 7 686 704 45 883 726 Reserves 20 315 860 Reserves 17 881 162 7b 7 686 704 25 567 866 Reserves - Reserves - Non-current 21 105 180 liabilities Current liabilities Other financial 28 760 015 liabilities Account payable 133 795 670 Derivative liability (17 881 162) (7 686 704) - Shareholders for 14 952 dividend Provision for taxation 3 549 584 Total equity and (30 389 214) (13 934 030) 417 618 856 liabilities Number of shares in (8 405) (3 904) 89 954 issue (`000) Net asset value per 278.71 share (cents) Net tangible asset 38.10 value per share (cents) Notes on transactions - SSF`s 1a. Reversal of "Fair value write down on derivatives" and "Derivative liability" resulting from the elimination of the acquisition of the SSF`s. 2a. Reversal of "Interest paid" to "Bank and cash" resulting from the elimination of the acquisition of the SSF`s. 3a. Reversal of "Taxation" and "Deferred taxation" effects resulting from the elimination of the acquisition of the SSF`s. 4a. Reversal of the initial margin and variation margin deposits from "Loans receivable" and "Receivable margin call payments" respectively back to "Bank and cash" resulting from the elimination of the acquisition of the SSF`s. 5a. Number of shares to be repurchased on closure of the SSF contracts. 6a. Repurchase of ordinary shares at original cost price of the SSF contracts - made up as follows Initial margin call deposit 5 883 290 Variable margin call payments 17 881 162 Cash transferred 6 624 762 Cost of shares repurchased 30 389 214 7a. Fair value write down on derivatives are unwound in equity on closure of SSF contracts. Notes on transactions - CFD`s 1b. Reversal of "Fair value write down on derivatives" and "Derivative liability" resulting from the elimination of the acquisition of the CFD`s 2b. Reversal of "Interest paid" to "Bank and cash" resulting from the elimination of the acquisition of the CFD`s. 3b. Reversal of "Taxation" and "Deferred taxation" effects resulting from the elimination of the acquisition of the CFD`s. 4b. Reversal of the initial margin and variation margin deposits from "Loans receivable" and "Receivable margin call payments" respectively back to "Bank and cash" resulting from the elimination of the acquisition of the CFD`s. 5b. Number of shares to be repurchased in terms of the CFD`s. 6b. Repurchase of ordinary shares at original cost price of CFD - made up as follows: Initial margin call deposit 6 247 326 Variable margin call payments 7 686 704 Cash transferred - Cost of shares repurchased 13 934 030 7b. Fair value write down on derivatives are unwound in equity on closure of CFD contracts. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENTS Shareholders are referred to the previous cautionary announcement dated 30 March 2009 and 21 May 2009, and are advised that the cautionary announcement is now withdrawn. Johannesburg 02 July 2009 Designated Advisor Arcay Moela Sponsors (Proprietary) Limited Date: 02/07/2009 17:07:02 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.
