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DSY - Discovery Holdings Limited - Trading Statement

Release Date: 24/08/2011 07:07
Code(s): DSY
Wrap Text

DSY - Discovery Holdings Limited - Trading Statement DISCOVERY HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1999/007789/06) ISIN: ZAE000022331 Share Code: DSY ("Discovery" or "the Company") TRADING STATEMENT Discovery is currently finalising its results for the year ended 30 June 2011, which will be released on 1 September 2011. In order to assist in understanding the results for the period, Discovery intends on providing Normalised Headline Earnings, which is defined as Earnings excluding the impact of the acquisition of Standard Life Healthcare and excluding realised gains on available-for-sale financial instruments. Management is of the view that this best represents the operating results for the period. Shareholders are referred to the trading statement for the nine month period ended on 31 March 2011 released on 24 June 2011, which provided a high level overview of the Discovery Group performance. Shareholders are further referred to the announcement of 11 May 2010 wherein Discovery announced its acquisition of the entire share capital of Standard Life Healthcare, a wholly-owned subsidiary of the Standard Life Group, for R1.56bn (GBP138m), as well as the related increase in shareholding in Prudential Health Holdings Ltd ("PHHL"), the holding company of PruHealth and PruProtect, the joint ventures between Discovery and Prudential Assurance Company ("Prudential") of the United Kingdom ("the Transaction"). Applying the requirements of IFRS3: Business Combinations to the Transaction results in several large impacts in the income statement of the Company, including the recording of a substantial profit on the increase in Discovery`s shareholding in PHHL from 50% to 75%. Full details of these impacts will be provided with the results. Normalised Headline Earnings per share is expected to be between 25% and 35% higher than the corresponding reporting period of the previous year. Headline Earnings per share, which includes some, but not all, of the impacts of the Transaction and excludes realised gains, is expected to be between 0% and 10% higher than the corresponding reporting period of the previous year. Earnings per share, which includes all of the impacts of the Transaction and realised gains, is expected to be between 45% and 55% higher than the corresponding reporting period of the previous year. The financial information on which this trading statement is based has not been reviewed and reported on by the Company`s auditors. Sandton 24 August 2011 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 24/08/2011 07:07:22 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.

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