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SEARDEL EXPECTS BIGGER LOSSES

Clothing and textile manufacturer Seardel Investment Corporation (SER) on Friday advised that its headline loss per share for the nine-month period ended March 31 2009 was expected to be between 43c and 48c, and the attributable loss per share to be between 61c and 67c.

It also advised that it expected its headline loss to be between R190m and R210m and the attributable loss to be between R270m and R295m.

The group said that this would translate to an increase in headline loss of between 92% and 112%, and an increase in attributable loss of between 51% and 66% to the previous corresponding period.

Seardel also noted that as per the announcement published in December 2008, it had changed its year-end from June 30 to March 31 to align its financial year-end with that of its majority shareholder, Hosken Consolidated Investment Limited.

It further advised shareholders that the headline loss per share and attributable loss per share had been calculated on an increased number of Seardel ordinary shares in issue compared to the previous corresponding period.

This resulted from an additional 613 057 249 Seardel ordinary shares being issued during the nine-month period ended March 31 2009 pursuant to a rights offer, the group said.

A contributing factor to the results to March 31 2009 was the poor trading results from the textile division’s vertical pipeline of spinning, weaving, finishing and denim divisions.

Seardel said that other factors contributing to the losses were retrenchment and relocation costs incurred as part of the group’s turnaround plan, impairments to plant and equipment and inventory obsolescence provisions and write offs. Seardels’ results for the year ended March 31 2009 are expected to be published on SENS by May 18 2009.

Source: Fin 24 – I net Bridge