BSI STEEL LIMITED - Trading statement

Trading statement

BSI Steel Limited
(Incorporated in the Republic of South Africa)
(Registration number 2001/023164/06)
JSE Code: BSS
ISIN: ZAE000125134
(“the company”)

TRADING STATEMENT

In compliance with paragraph 3.4 of the Listings Requirements
of the JSE Limited, a listed company is required to publish a
trading statement as soon as it is satisfied that a reasonable
degree of certainty exists, that the financial results for the
next period to be reported on are likely to vary by more than
20% from the previous corresponding period.

Shareholders are advised that the company is expecting to
report the following for the year ended 31 March 2015:
-   Headline earnings per share of between 2.3 cents and 1.8
    cents per share having decreased by between 55% and 65% in
    comparison   to  5.09   cents   reported  for   the  prior
    comparative period
-   Earnings per share of between 0.58 cents and 0.06 cents
    per share having decreased by between 89% and 99% in
    comparison   to  5.26   cents   reported  for   the  prior
    comparative period
-   Earnings per share from continued operations of between
    2.66 cents and 3.46 cents; and
-   A loss per share from discontinued operations of between
    2.60 cents and 2.88 cents.

The decrease in earnings is largely due to the closure of
various loss making operations (“restructure”). Trading losses
before tax attributable to these operations during the 2015
financial year amounted to approximately R25 million and
restructuring costs of approximately R26 million were incurred
to effect the closures. The restructure, which was completed
before year end, resulted in an approximate decrease in
operating expenses of R8 million per month without a
noticeable decline in tons sold and a reduction in working
capital requirements thereby creating a more sustainable
platform for the coming year.
The information in this trading statement has not been
reviewed or reported on by the company’s auditors.

Shareholders are advised that the results for the year ended
31 March 2015 are expected to be released on Thursday 11 June
2015 or thereabouts.

Johannesburg
5 June 2015

Designated Advisor
Sasfin Capital
(A division of Sasfin Bank Limited)

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