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Trading statement
Mpact Limited
(Incorporated in the Republic of South Africa)
(Registration number 2004/025229/06)
JSE share code: MPT ISIN: ZAE000156501
(“Mpact” or “the Company” or “the Group”)
TRADING STATEMENT
In terms of the Listings Requirements of the JSE Limited (“JSE”), 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 on next will differ by
20% or more from the financial results of the previous corresponding reporting period.
The factors that negatively impacted the interim results of the Group for the six months
ended 30 June 2016 continue to adversely affect the Group for the year ending 31
December 2016. These include lower sales of containerboard as a consequence of certain
Mpact customers acquiring their own paper mills, a higher effective tax rate, higher finance
costs as well as losses incurred at Mpact Polymers.
The Group has initiated the closure of its plastics manufacturing operation in Zimbabwe. It is
anticipated that the charge to the income statement relating to the closure will be an after tax
amount of approximately R40 million. For the year ended 31 December 2015, the Zimbabwe
manufacturing operation reported a turnover of approximately R87 million (less than 1% of
Group turnover) and a loss after tax of R3 million.
In light of the above factors, shareholders are advised that Mpact expects its basic earnings
per share (“EPS”) and headline earnings per share (“HEPS”) for the year ending 31
December 2016 to be lower than the corresponding period by at least 30% or lower by at
least 110.1 cents and 109.7 cents respectively, when compared to reported EPS and HEPS
of 366.9 and 365.8 cents respectively, for the year ended 31 December 2015.
There is currently insufficient certainty to enable the Group to provide specific guidance on
the extent of the impact of the above factors on EPS and HEPS. It is anticipated that Mpact
will publish a further trading statement on the Stock Exchange News Service on or about 16
February 2017 closer to the release of its financial results for the year ending 31 December
2016, expected to be during the week of 2 March 2017.
Shareholders are advised that the financial information on which this trading statement is
based has not been reviewed and reported on by the Company’s external auditors.
Melrose Arch
12 December 2016
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 12/12/2016 02:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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