DELTA EMD LIMITED - Business Update And Trading Statement For The Six Months Ended 27 June 2018 And Cautionary Announcement

Release Date: 06/09/2018 13:52
Code(s): DTA
Wrap Text
Business Update And Trading Statement For The Six Months Ended 27 June 2018 And Cautionary Announcement

Delta EMD Limited
Incorporated in the Republic of South Africa)
Registration number 1919/006020/06
ISIN: ZAE000132817
Share code: DTA
(“Delta EMD” or “the Group”)


Business Update

A final external audit of the environmental conditions on the Group’s
Nelspruit plant site was conducted and the report was submitted to the
Department of Environmental Affairs. The results of the audit indicate
that 98% of the requirements of the outstanding Order issued by the
Department of Environmental Affairs have been met. The plant site will
continue to be monitored for 12 months to confirm continuing favourable
trends and then the company will request that the Department close out
the Order.

Efforts to market and sell the Nelspruit plant site continue.   The
directors have, based on experience trying to sell the plant site
during the past several years and valuations indicated by potential
buyers, decided to impair the value of the plant site from R 25 949
000 to R 10 000 000, resulting in a per share impairment expense of
32.4 cents per share.

Cautionary Announcement

Shareholders are advised that the Company is in discussions with
potential parties interested in the purchase of the Nelspruit plant
site. If any is successfully concluded, it may have a material effect
on Delta’s share price.

Accordingly, shareholders are advised to exercise caution when dealing
in the Company’s securities until a further announcement in this regard
is made.

Trading Statement

Paragraph 3.4 (b) of the Listings Requirements of the JSE Limited
requires a company to publish a trading statement in the event that
the company is satisfied with a reasonable degree of certainty that
its earnings per share and headline earnings per share for the period
will differ from the previous corresponding reporting period by at
least 20%.
Delta EMD is currently finalising its results for the six months ended
27 June 2018 (“the period”). The results will be released towards the
end of September 2018.

Shareholders are advised that, due in large part to the impairment
expense, Delta EMD expects its loss per share for the period, to be
between 31.1 cents and 32.0 cents, or between 591% and 611% more than
the loss per share of 4.5 cents for the previous corresponding
reporting period. Delta EMD also expects its headline earnings per
share, which excludes the impairment expense, to be between 0.7 cents
and 0.8 cents, compared to the headline loss per share of 4.5 cents
for the previous corresponding reporting period.

The forecast financial information on which this trading statement is
based has not been reviewed nor reported on by the Group’s external

6 September 2018

Deloitte & Touche Sponsor Services Proprietary Limited

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