BFS - Blue Financial Services Limited - Trading update

BFS - Blue Financial Services Limited - Trading update                          
Blue Financial Services Limited                                                 
(Incorporated in the Republic of South Africa)                                  
(Registration Number: 1996/006595/06)                                           
JSE Share code:  BFS                                                            
ISIN: ZAE000083655                                                              
("Blue" or the "Company")                                                       
TRADING UPDATE                                                                  
In accordance with paragraph 3.4 of the Listings Requirements of the JSE        
Limited, a listed company is required to publish a trading statement, as soon as
it is satisfied that a reasonable degree of certainty exists, that the financial
results for the next period to be reported on are likely to vary by more than   
20% from the previous corresponding period.                                     
Blue wishes to advise shareholders that the company expects a decrease in the   
loss per share ("LPS") and the headline loss per share ("HLPS") for the year    
ended 28 February 2011, of more than 90% compared to the LPS and HLPS reported  
in the prior comparative period.                                                
The main reasons for the reductions in the loss per share are:-                 
-    cost savings generated as a result of right-sizing the organization;       
-    increase in lending activities;                                            
-    credit impairments reduced through improvements in collection processes;   
-    improvements in operational efficiencies and business sophistication; and  
-    increase in the number of shares in issue due to the recapitalisation of   
the Group and subsequent debt: equity conversion. The current issued shares 
    are 5.8 billion (August 2010: 624 million).                                 
The restructuring embarked upon by the Company during the past financial year   
and the impact of the Mayibuye turnaround strategy, have contributed to the     
expected improvement in financial results.                                      
These actions provide a sound platform for growth and returning the group to    
profitability in the future.                                                    
Once the Company has obtained a reasonable degree of certainty on the           
performance and the actual range of change in LPS and HLPS, a further trading   
statement will be released.                                                     
The information in this trading update has not been reviewed or reported on by  
Blue`s independent auditors.                                                    
Pretoria                                                                        
28 June 2011                                                                    
Designated Adviser                                                              
Grindrod Bank Limited                                                           
Date: 28/06/2011 12:00:02 Supplied by www.sharenet.co.za                     
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