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NPK - Nampak Limited - Revised strategy contributes to improvement in performance NAMPAK LIMITED Registration number 1968/008070/06 Incorporated in the Republic of South Africa ISIN: ZAE000071676 Share code: NPK ("Nampak") REVISED STRATEGY CONTRIBUTES TO IMPROVEMENT IN PERFORMANCE Nampak today released its results for the six months ended 31 March 2010. Operating profit increased by 13% following good turnarounds in the Corrugated business in South Africa and the Leeds, UK folding carton business. The sale or closure of some loss-making businesses also contributed to the improvement. The operating margin improved from 7.0% to 8.5%. Headline earnings per share were 16% higher as a result of the improvement in operating profit and a reduction in finance costs. The dividend has been increased by 39%. Excluding the effects of the stronger rand, revenue was similar to last year. Total capital expenditure of R346 million was well down on last year`s R759 million and is consistent with the group`s stated strategy of limiting capital expenditure to less than depreciation. CEO Andrew Marshall said, "We are delighted with our increased operating profit and headline earnings, as well as the improvement in our trading margin. The strategy implemented in 2009 of fixing, selling or closing underperforming businesses and the increased focus on operational performance is beginning to produce improved results. In addition, we have continued to invest in those businesses where we have sustainable competitive advantages. There has been an ongoing focus on working capital and capital expenditure has been curtailed. This has led to a significant reduction in our debt and an improvement in the group`s gearing. We are also very proud of our latest Empowerdex BBBEE level 4 rating, up from level 6 in the previous year as a result of a number of initiatives across the group. As we do not anticipate a repeat of the losses that occurred in the 2nd half of 2009, I am confident of a considerable improvement in profits for the year ending September 2010". Contact: 27 May 2010 Nampak Investor Relations Graham Hayward Tel: 011 719 6320 Cell: 082 800 7863 graham.hayward@za.nampak.com Date: 27/05/2010 15:37:01 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.
