Sharenet Sites 
Sharenet Sites
HUG - Huge Group Limited - Updated Pro Forma Financial Information And Withdrawal Of Cautionary Announcement HUGE GROUP LIMITED (Registration number 2006/023587/06) Share code: HUG ISIN: ZAE000102042 ("Huge" or "the Company") UPDATED PRO FORMA FINANCIAL INFORMATION AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT Pro forma Effects of the SSF Transactions The updated 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 updated 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. Consolidated Income Statement for the year ended 28 February 2009 Pro forma Audited effects results Eliminate SSF trans- 28 Feb purchase action
2009 of SSFs Note eliminated Revenue 608 539 827 608 539 827 Gross profit 113 072 809 113 072 809 Other income 3 563 103 3 563 103 Operating expenses -114 611 604 17 881 162 1 -96 730 442
Operating profit 2 024 308 17 881 162 19 905 470 Finance costs -6 527 695 2 708 073 2 -3 819 622 Interest received 6 205 310 6 205 310 Income from equity accounted investments
2 641 740 2 641 740 Net income before taxation 4 343 663 20 589 235 24 932 898
Income taxation 3 093 559 -5 764 986 3 -2 671 427 Attributable earnings 7 437 222 14 824 249 4 22 261 471 Basic earnings per share (cents) 6.82 20.41 Headline earnings per share (cents) 6.85 20.44 Dividends per share 12.00 12.00 (cents) Total number of shares in issue (`000) 106 167 106 167 Weighted number of shares in issue (`000) 109 089 109 089 Pro forma Assumed effects repurchase Pro forma
SSF trans- at first effect action roll over shares re- eliminated date Note purchased Revenue 608 539 827 608 539 827 Gross profit 113 072 809 113 072 809 Other income 3 563 103 3 563 103 Operating expenses -96 730 442 -96 730 442 Operating profit 19 905 470 19 905 470
Finance costs -3 819 622 -3 819 622 Interest received 6 205 310 -648 656 9 5 556 654 Income from equity accounted investments 2 641 740 2 641 740 Net income before taxation 24 932 898 -648 656 24 284 242 Income taxation 181 624 -2 671 427 8 -2 489 803
Attributable earnings 22 261 471 -467 032 21 794 439 Basic earnings per share (cents) 20.41 20.30 Headline earnings per share (cents) 20.44 20.34 Dividends per share 12.00 12.00 (cents) Total number of shares in issue (`000) 106 167 -8 405 97 762 Weighted number of shares in issue (`000) 109 089 -1 751 107 338 Consolidated Balance Sheet as at 28 February 2009 Pro forma
Audited effects results Eliminate SSF trans- 28 Feb purchase action 2009 of SSFs Note eliminated
Assets Property, plant and equipment 59 627 060 59 627 060 Investments 9 027 925 9 027 925 Deferred tax 9 652 736 -5 764 986 3 3 887 750 Intangible assets 216 437 491 216 437 491 Current assets Inventory 28 720 933 28 720 933 Trade and other receivables 93 257 238 -5 883 290 5 87 373 948 Loans receivable 6 124 364 6 124 364 Bank and cash 13 785 144 26 472 525 40 257 669 Bank and cash 13 785 144 5 883 290 5 19 668 434 Bank and cash 17 881 162 1 17 881 162 Bank and cash 2 708 073 2 2 708 073 Bank and cash - Total assets 436 632 891 14 824 249 451 457 140 Equity and liabilities Share capital 10 617 10 617 Share premium 228 822 360 228 822 360 Retained income 20 278 045 20 278 045 Reserves 296 467 14 824 249 4 15 120 716 249 407 489 14 824 249 264 231 738 Non-current liabilities Other financial 1 516 202 1 516 202 liabilities Shareholders loans 17 035 069 17 035 069 Finance lease obligations 9 484 917 9 484 917
28 036 188 28 036 188 Current liabilities Other financial liabilities 25 702 333 25 702 333 Finance lease liabilities 4 534 184 4 534 184 Trade and other payables 125 732 940 125 732 940
Shareholders for dividend 14 952 14 952 Provision for taxation 3 204 805 3 204 805
159 189 214 159 189 214 Total equity and liabilities 436 632 891 14 824 249 451 457 140
Number of shares in issue (`000) 106 167 106 167 Net asset value per share (cents) 234.92 248.88 Net tangible asset value per share (cents) 31.05 45.02
Pro forma Assumed effects repurchase Pro forma SSF trans- at first effect action roll over shares re-
eliminated date Note purchased Assets Property, plant and equipment 59 627 060 59 627 060 Investments 9 027 925 9 027 925 Deferred tax 3 887 750 3 887 750 Intangible assets 216 437 491 216 437 491
Current assets Inventory 28 720 933 28 720 933 Trade and other receivables 87 373 948 87 373 948 Loans receivable 6 124 364 6 124 364 Bank and cash 40 257 669 -31 803 019 8 454 650 Bank and cash 19 668 434 19 668 434 Bank and cash 17 881 162 17 881 162 Bank and cash 2 708 073 -648 656 9 2 059 417 Bank and cash - -31 154 363 6 -31 154 363 Total assets 451 457 140 -32 108 481 419 654 121
Equity and liabilities Share capital 10 617 -840 6 9 777 Share premium 228 822 360 -31 134 656 6 197 687 704 Retained income 20 278 045 -648 656 10 19 629 389 Reserves 15 120 716 15 120 716 264 231 738 -31 784 152 232 447 586 Non-current liabilities
Other financial liabilities 1 516 202 1 516 202 Shareholders loans 17 035 069 17 035 069
Finance lease obligations 9 484 917 9 484 917 28 036 188 28 036 188 Current liabilities Other financial liabilities 25 702 333 25 702 333 Finance lease liabilities 4 534 184 4 534 184 Trade and other payables 125 732 940 125 732 940 Shareholders for dividend 14 952 14 952 Provision for taxation 181 624 3 204 805 3 023 181 159 189 214 159 007 590
Total equity and -31 784 152 liabilities 451 457 140 419 654 121 Number of shares in issue (`000) 106 167 8405 97 762 Net asset value per share (cents) 248.88 237.94
Net tangible asset value per share (cents) 45.02 16.54 Notes on Pro formas 1. Reversal of "Fair value right down on derivatives" and returning cash paid on variation margin calls to bank. 2. Reversal of "Interest paid" to "Bank and cash" resulting from the elimination of the SSF Purchase 3. Reversal of "Taxation" and "Deferred taxation" effects resulting from the elimination of the SSF Purchase 4. Cumulative effect of the reversal of SSF`s on income statement and reserves. 5. Reversal of the initial margin deposit back to "Bank and cash" resulting from the elimination of the SSF Purchase. 6. Cash outflow to purchase the shares at first roll over date. Purchase price being the future price as quoted on initial acquisition of the derivatives. 7. Number of shares assumed repurchased 8. Assumed no STC payable as shares will be repurchased using share premium and not retained income. A tax reduction has been calculated at 28% due to reduced interest income. 9. Interest received is reduced as a result of outflow of R 31 million to purchase shares which reduced positive cash balances. Interest calculated at 10% from assumed repurchase date. 10. Cumulative effect of the purchase of shares on income statement and reserves. Other Notes The Pro formas assume the total repurchase of all underlying securities held through SSF`s owned by the group, which include 359 200 SSF`s which were purchased through the market from the general public. The pro formas are presented in compliance with the JSE Limited`s Listings Requirements. The first roll over date was 15 December 2008. DOCUMENTATION The Company is in the process of finalising a circular to shareholders which will contain a notice of general meeting whereby shareholders will be requested to ratify the purchase of SSF`s by the Company from deemed related parties as well as general purchases of SSF`s, to the extent required by law as well as to authorise the possible future repurchase of the underlying securities in terms of a specific authority to repurchase shares. A circular is expected to be posted to shareholders within 28 days of this announcement. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT Shareholders are referred to the previous cautionary announcements dated 30 March 2009, 16 July 2009, 31 August 2009 and 14 October 2009 respectively and are hereby advised that this cautionary has now been withdrawn. Johannesburg 27 November 2009 Designated Advisor Arcay Moela Sponsors (Proprietary) Limited Date: 27/11/2009 17:39:04 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.
