In accordance with the JSE’s listing requirements, which stipulate that a company has to publish a trading statement if an increase or decrease of more than 20% (compared with the previous reporting period) in its basic earnings per share and headline earnings per share is expected, and with reference to the trading statement published on 7 July 2009, shareholders are hereby advised that Headline Earnings per share for the year ended 30 June 2009 are expected to be in excess of 22 cents per share, up from 15.31 cents per share for the 12 months ended 30 June 2008, an increase in excess of 40% (on 7 July the Trading Update indicated an increase in excess of 30%).
This growth in headline earnings per share was achieved as a result of managing operational costs down and optimising revenues through the considered use of long-term off-take agreements (for Petmin’s products) with financially sound counterparties and currency hedging strategies. The Group’s Headline Earnings were R121 million, up from R77 million in 2008, an increase of 57%.
On 7 July it was reported that "Earnings per share" for 30 June 2009 could not be determined at the time as the relevant IFRS fair value adjustments had not been finalised yet. Petmin can now report that during the year under review Petmin increased its interest to an effective 34.9% (2008: 25%) economic interest in Veremo Minerals (Pty) Ltd. The resultant fair value on acquisition of the additional interest resulted in a share of profit of equity accounted investee of R78 million (2008: R303 million) being recognised in income. This is an accounting profit and has no impact on cash or Headline Earnings going forward.
On 7 July it was reported that the company had concluded the sale of Springlake Holdings (Pty) Limited (“Springlake”) and as a result of delays in meeting all the conditions precedent (the sale agreements were signed in the early part of 2008), during which period global market conditions dramatically declined, the final purchase consideration was adjusted in line therewith and as a result the company received proceeds of R 85 million on the sale, resulting in an accounting loss of approximately R 79 million.
As a result of the above, Earnings per share for the year ended 30 June 2009 are expected to be 21.86 cents per share, down from 75.43 cents per share for the year ended 30 June 2008, a decrease of 71%. This is due to the inclusion of R303 million recognised in income in 2008, on the initial acquisition of the 25% investment in Veremo Holdings (Pty) Ltd.
It is expected that the Reviewed Results will be published on or about 9 September 2009.
© 2009 Petmin Limited