ESR - Esorfranki Limited - Trading Update Release Date: 10/05/2011 12:21:03 Code(s): ESR
ESR - Esorfranki Limited - Trading Update
(Incorporated in the Republic of South Africa)
(Registration number: 1994/000732/06)
JSE code: ESR
("Esorfranki" or "the company")
Esorfranki is currently finalising its financial results for the year ended
28 February 2011. Shareholders are advised that the company expects a basic
loss per share of between 13,5 cents and 14,5 cents and a headline loss per
share of between 12,5 cents and 13,5 cents. As set out in the interim
results announcement dated 26 October 2010, a number of factors negatively
impacted on the group throughout the year. These included difficult trading
conditions in a contracting construction sector such as a dearth of
contracts coming to market, contract award delays and cancellations, the non-
award of tenders, unusual inclement weather, the disruptive effects of the
FIFA 2010 Soccer World Cup and post-event lag and intensifying competition,
all of which have combined to reduce operating margins. The group further
incurred once-off restructuring costs of approximately R7 million and
contract losses for the year of approximately R90 million. The relevant
problematic contracts have now been concluded.
Esorfranki`s work in hand and future pipeline remain healthy, with a secured
order book in excess of R1,9 billion as at the date of this announcement and
imminent awarded work pending of approximately R1,2 billion.
The financial information on which this trading update is based has not been
reviewed or reported on by the company`s auditors.
The company`s financial results for the year ended 28 February 2011 are
expected to be published on SENS on or about 26 May 2011.
10 May 2011
Vunani Corporate Finance
Date: 10/05/2011 12:21:03 Supplied by www.sharenet.co.za
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