I will take profits, hold core position:
AFLUY
TRADING STATEMENT
Shareholders are advised that due to the accounting treatment of
derivative instruments in terms of SA GAAP, Aflease’s financial results for
the six months ended 30 June 2005 will be severely influenced by the
adjustments on an outstanding convertible loan that the Company has with
Eastbourne Capital Management, L.L.C. ("Eastbourne loan”).
The aforementioned adjustment results in a non cashflow loss if the
Company’s share price rises, and accordingly, as a result of the
phenomenal rise in the Company’s share price for the interim period ended, the
financial results have been negatively affected. The effect of these
adjustments, mentioned below, is an anticipated decrease of 220% to 240%
in both headline earnings and earnings per share, compared to those of
the prior comparative period.
The conversion date for the Eastbourne loan is the 23 September 2005,
the mechanisms for which conversion are set out in the Company's annual
financial statements for the year ended 31 December 2004. Aflease
expects Eastbourne, the holder of the loan, to convert its loan into
approximately 21 million shares on the conversion date. The result of the
above transaction is that during September 2005 the loan will be converted
into equity and this will reflect as such on the balance sheet. On
conversion of the loan, Eastbourne is also awarded a free option for a
further 21 million shares at R3.50 per share.
The financial information on which this trading statement is based has
not been reviewed or reported on by the Company's auditors. The
publication of the interim results is expected in late September 2005.
Johannesburg
8 September 2005 |
