Sharenet Sites 
Sharenet Sites
Trading Statement
Chemical Specialities Limited
Incorporated in the Republic of South Africa
Registration number 2005/039947/06
Share code: CSP
ISIN: ZAE000109427
("Chemspec" or "the Company")
TRADING STATEMENT
In terms of the JSE Limited, companies are required to publish a trading
statement as soon as they are satisfied that a reasonable degree of
certainty exists that the financial results for the period to be reported
upon next will differ by at least 20% from the financial results for the
previous corresponding period.
Accordingly, shareholders are advised that, for the year ended 31 March
2014, ChemSpec expects that the headline loss will worsen by between 91% and
81% or be between 5.54 cents per share and 5.25 cents per share compared to
the headline loss of 2.90 cents per share reported in the previous
corresponding period.
Loss per share is expected to worsen by between 38% and 28% or be between
3.99 cents per share and 3.70 cents per share compared to the loss of 2.89
cents per share as reported in the previous corresponding period.
Revenue growth continues at double digit growth rates which it has
consistently achieved for the last two years. The growth and positioning
strategies, particularly in the decorative and industrial markets are slowly
bearing fruit in an extremely competitive space. Revenue in the automotive
businesses, specifically in the USA and Australia have grown at a slower pace
than anticipated but both territories have been restructured to generate
profit. Whilst this is encouraging the return to profitability is being
hampered by the high fixed cost base that the business has historically
carried.
In order to speed up the return to profitability management has embarked on an
extensive structural review which includes a de-complication and
rationalisation strategy to substantially reduce fixed costs while at the
same time improving revenue and service delivery to customers. This has
continued into the new fiscal year. The current results include
discontinued operations losses and restructuring costs that amount to 2.94
cents per share. These restructuring costs have already been eliminated
and management continue to work at further savings in the current year to
ensure that the business is returned to profitability.
The information on which the above trading statement has been provided has
not been reviewed or reported on by the company’s auditors.
The audited results for the year ended 31 March 2014 are expected to be
released on SENS on 30 June 2014.
Durban
10 June 2014
Designated Advisor
Grindrod Bank Limited
Date: 10/06/2014 12:30:00 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.
