Stakeholders are advised that the earnings per share of the JSE Limited Group (“Group”) for the six months ended 30 June 2008 (“the period”) are expected to be between 319% and 329% higher than the comparative period’s 47.7 cents per share and headline earnings per share are expected to be between 409% and 419% higher than the 38.7 cents per share of the comparative period. The latter comparative figure has been recalculated to comply with SAICA circular 08/07- Headline Earnings.
The earnings and headline earnings per share for the Group for the six months ended 30 June 2008 have been impacted by a number of factors.
- the robust world equities market performance resulting in an increase in trades on the JSE and hence in revenue of between 19% and 29% for the period;
- the final tranche of options issued to qualifying black shareholders in terms of the Black Shareholder Retention Scheme, amounting to a cost of approximately R38 million. The actual current impact of this on cash flow is zero. There will be a small positive impact on cash flow when the options are exercised in 2011;
- the impact of the “mark to market” of the participation interests issued under the first tranche of the Employee Scheme approved by JSE shareholders. This has resulted in a write-back to income in the current period of approximately R13 million but the continuing accrual for this tranche amounted to a charge of R12 million. The net effect of the first tranche is thus expected to be a write back of approximately R1 million;
- the impact of the issue of approximately 1 million participation interests under the second tranche of the Employee Scheme approved by the JSE shareholders and the acquisition of call options to economically hedge this liability over the life of the tranche. This resulted in a net charge of approximately R20 million; and
- in the comparative period, the final issue of shares at par value to the JSE Empowerment Fund (JEF), amounted to a cost of approximately R30 million in that period.
Stakeholders are advised that the information provided in this trading statement has not been reviewed and/or reported on by the auditors.
18 July 2008
RAND MERCHANT BANK (A division of FirstRand Bank Limited)