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Trading statement
CADIZ HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1997/007258/06)
JSE share code: CDZ
ISIN: ZAE000017661
(“Cadiz Holdings” or “the group”)
CADIZ HOLDINGS – TRADING STATEMENT
Cadiz Holdings shareholders are advised that basic and diluted
earnings and headline earnings per share for the six months
ended 30 September 2014 (“the period”) are anticipated to be
more than 20% (0.14 cents) lower than the corresponding period
last year (0.7 cents).
Cadiz Asset Management losses will be greater than the R2.1
million loss for the corresponding period last year due to the
lower level of assets under management. Although the turnaround
in the asset management business is taking longer than expected
to bear fruit, the group remains committed to its investment
philosophy and process which management believes is in the best
long-term interests of clients. This is supported by the board
and is backed by Cadiz’ balance sheet. As a result of the
ongoing losses Cadiz will be impairing the R226.9 million
goodwill in Cadiz Asset Management by approximately R120
million.
The profit from Investments will be lower than the R10.4 million
profit for the prior period mainly due to losses from exposure
to ABIL as well as a reduction in value of Cadiz’ investment in
Makana Investment Corporation (MIC). This is primarily due to
the value of MIC’s investment in Cadiz reducing with the Cadiz
share price.
Management is also considering whether it is appropriate to
provide against recoverability of the R65.5 million loan funding
provided to Makana for their 15% stake in Cadiz as a result of
the lower Cadiz share price.
Advisory profit is expected to be in line with the R0.9m profit
for the prior period and BNP Paribas Cadiz Securities (BNPPC) is
expected to report a profit for the period. Management will
evaluate the valuation of BNPPC as we are entering the two year
trading period which will be used to calculate the price at
which BNP Paribas can exercise its call option in 2016.
More specific information will be provided to shareholders as
soon as there is reasonable certainty as to the range within 20%
by which basic and diluted earnings and headline earnings per
share have declined. Shareholders should nonetheless be aware
that the combined effect of the items referred to in this
announcement is that Cadiz will report a basic and diluted loss
and headline loss per share for the period.
The group’s results for the six months ended 30 September 2014
will be announced on SENS on Monday 17 November 2014.
The financial information on which this trading statement is
based has not been reviewed or reported on by the group’s
independent auditors.
Cape Town
08 October 2014
Sponsor
Investec Bank Limited
Date: 08/10/2014 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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