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POYNTING HOLDINGS LIMITED - Further Trading Statement

Release Date: 29/09/2014 17:30
Code(s): POY     PDF:  
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Further Trading Statement

POYNTING HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 1997/011142/06)
Share code: POY ISIN: ZAE000121299
(“Poynting” or “the Group”)


FURTHER TRADING STATEMENT



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

Accounting for the African Union Communications (“Aucom”) transaction in terms of IFRS has resulted in a
range of accounting complexities that makes understanding the financial results difficult. IFRS3 (Business
Combinations) specifically requires accounting treatment which does not, in management’s view, provide a
realistic reflection of the performance of the Group. It is therefore important for shareholders to consider the
detailed results commentary together with the reported headline earnings figures when these are made
available.

Management will be reporting adjusted headline earnings that attempts to provide a more accurate view of
the year ended 30 June 2014. These however still include a loss in Aucom for the 4 months since the
transaction became effective on 28 February 2014 despite the fact that Aucom exceeded their profit
guarantees for the 12 months to 30 June 2014.

Further to the trading statement released on SENS on 30 June 2014, a review of the financial results for the
year ending 30 June 2014 and specifically the accounting treatment of the Aucom acquisition has indicated
that the loss per share is expected to be between 91.43 cents and 111.74 cents and headline loss per
share is expected to be between 10.33 cents and 12.63 cents compared to the earnings per share and the
headline earnings per share of 10.48 cents for the year ended 30 June 2013.

Excluding the impact of entries required under IFRS3 which required the creation and impairment of
goodwill in respect of the acquisition of Aucom, as well as once-off transaction costs, the Group would have
reported adjusted headline earnings of 0.66 cents per share for the year ended 30 June 2014 compared to
the prior year headline earnings of 10.48 cents per share.

The financial information on which this trading statement is based has not been reviewed or reported on by
Poynting’s auditors. Poynting’s year-end financial results are expected to be released on SENS on or about
30 September 2014.


Johannesburg
29 September 2014

Designated Adviser
Merchantec Capital

Date: 29/09/2014 05:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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