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MVELASERVE LIMITED - Trading statement

Release Date: 22/08/2012 12:30
Code(s): MVS     PDF:  
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Trading statement

MVELASERVE LIMITED
("Mvelaserve")
(Incorporated in the Republic of South Africa)
(Registration number: 1999/003610/06)
Ordinary share code: MVS
Ordinary share ISIN: ZAE000151353

TRADING STATEMENT

In terms of the JSE Limited Listings Requirements, companies are required
to publish a trading statement as soon as they are reasonably certain that
the financial results for the current reporting period will differ by more
than 20% from the prior corresponding period.

Accordingly, shareholders are advised that for the 12 months ended 30 June
2012 (“the year”):
* Earnings per share (“EPS”) is expected to decrease to between 45 and 55
cents, compared to earnings per share of 87,8 cents for the previous year;
and
* Headline earnings per share (“HEPS”) is expected to decrease to between
60 and 70 cents, compared to 159,8 cents for the previous year ended 30
June 2011 (“the previous year”).

Notwithstanding the above, performance of group operations improved during
the second half of the year predominantly as a result of the successful
turnaround of the Cleaning and Catering businesses. The group accordingly
generated HEPS for the second six month period of between 45 and 50 cents,
compared to 19,5 cents for the first six months and to 10,3 cents for the
corresponding second six months in the previous year.

The decrease in EPS is attributable to, inter alia:
   - once-off write downs in the Cleaning and Catering businesses in terms
      of their restructuring as reported at 31 December 2011, with a
      negative effect of 13,6 cents on the EPS for the year;
   - impairments of goodwill for Stamford Sales and SA Water with a
      negative effect of between 15 and 19 cents on EPS for the year;
   - a positive effect of 117,6 cents on EPS for the previous year as a
      result of once-off forgiveness of loans totalling R164 million (“the
      loans forgiveness”);
   - a positive effect of 39,3 cents on EPS for the previous year as a
      result of profit of R44 million realised on the sale of a Protea Coin
      division and a deemed profit of R10 million with the change in
      shareholding in Stamford Sales;
   - a negative effect of 105,8 cents on EPS for the previous year as a
      result of once-off impairments of R148 million, which countered the
      positive attributable factors above in the calculation of EPS for the
      previous year.

Together, the relevant factors above have a net negative effect of between
28,6 and 32,6 cents on EPS for the year, compared to a net positive effect
of 51,1 cents on EPS for the previous year.

The decrease in HEPS for the year is attributable to, inter alia, the items
affecting EPS as above but excluding the items below which, in terms of
SAICA’s Circular 3/2009 read with IAS33 – Earnings per Share, are excluded
for the purpose of calculating HEPS:

   -   the positive effect of 39,3 cents for the previous year as a result
       of profit of R44 million realised on the sale of a Protea Coin
       division and a deemed profit of R10 million with the change in
       shareholding in Stamford Sales; and
   -   the negative effect of 105,8 cents for the previous year as a result
       of once-off impairments of R148 million, which countered the positive
       attributable factors above in the calculation of EPS for the previous
       year.

Together, the factors above have a net negative effect of 13,6 cents on
HEPS for the year, compared to a net positive effect of 117,6 cents on HEPS
for the previous year.

Mvelaserve’s reviewed annual financial results are expected to be released
on SENS on or about Thursday, 6 September 2012.

The above information has not been reviewed or reported on by the company`s
auditors.

Centurion
22 August 2012
Sponsor: Investec Bank Limited

Date: 22/08/2012 12:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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