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ZEDER INVESTMENTS LIMITED - Trading Statement

Release Date: 02/04/2014 15:15
Code(s): ZED     PDF:  
Wrap Text
Trading Statement

ZEDER INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2006/019240/06
Share code: ZED
ISIN number: ZAE000088431
("Zeder")

SOTP AND RECURRING HEADLINE EARNINGS

Zeder, an investment holding company, continues to use
the   sum-of-the-parts  (“SOTP”)   value  and   recurring
headline earnings per share benchmarks to provide
management and investors with a realistic and transparent
way of evaluating Zeder’s performance.

Zeder’s SOTP value is calculated using the quoted market
prices for all JSE-listed and over-the-counter (“OTC”)
traded investments, and market related valuations for
unquoted, unlisted investments. Zeder’s see-through SOTP
value, however, is calculated on the exact same basis
apart from using the see-through JSE-listed market price
for Agri Voedsel’s investment in Pioneer Foods instead of
Agri Voedsel’s own OTC share price. Zeder’s recurring
headline earnings is the sum of its effective interest in
that of each of its underlying investments. The result is
that investments in which Zeder holds less than 20% and
are generally not equity accountable in terms of
accounting standards, are included in the calculation of
consolidated recurring headline earnings.

TRADING STATEMENT

In terms of the Listings Requirements of the JSE Limited,
a listed company is required to publish a trading
statement as soon as it becomes reasonably certain that
the financial results for the next period to be reported
on will show a 20% or more difference from those of the
previous corresponding period.

Zeder hereby advises     that   a   reasonable   degree   of
certainty exists that:

1.   Its SOTP value per share as at 28 February 2014 will
     be between R4.90 and R5.05 per share, or between
     22.8% and 26.6% higher than that as at 28 February
     2013;

2.   Its see-through SOTP value per share as at 28
     February 2014 will be between R5.15 and R5.30 per
     share, or between 18.4% and 21.8% higher than that
     as at 28 February 2013; and
3.       For the year ended 28 February 2014:

-        Recurring headline earnings per share will be
         between 29 cents and 30 cents, or between 12.8% and
         16.7% higher than that of the prior year;

-        Headline earnings per share will be between 25 cents
         and 26 cents, or between 24.4% and 29.4% higher than
         that of the prior year; and

-        Attributable earnings per share will be between 29
         cents and 30 cents, or between 42.6% and 44.6% lower
         than that of the prior year.

The increase in recurring headline earnings per share was
mainly due to improved contributions from Agri Voedsel
(i.e. Pioneer Foods), Capespan, Zaad, Kaap Agri and
Chayton.

However, the positive effect of the aforementioned was to
some extent offset by:

     •   the cash proceeds from the disposal of the bulk of
         Zeder’s Capevin Holdings shares yielded a lower
         return than what the Capevin Holdings investment did
         during the prior year; and
     •   a weaker performance from NWK and Suidwes, prior to
         disposing of same during September 2013, as a result
         of   drought   conditions   experienced   in   their
         geographical locations.

The aforementioned, coupled with higher marked-to-market
gains, resulted in the increase in headline earnings per
share.

The decrease in attributable earnings per share was
mainly as a result of the one-off non-headline gain on
the disposal of the bulk of Zeder’s Capevin Holdings
shares during the prior year.

This financial information has not been reviewed or
reported on by the auditor of Zeder. The audited results
for the year ended 28 February 2014 will be published on
or about 7 April 2014.

Stellenbosch
2 April 2014

Sponsor
PSG Capital

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