Seardel sees headline loss

It also advised that it expected its headline loss to be between R190 million and R210 million and the attributable loss to be between R270 million and R295 million.

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 on SENS in December 2008, it had changed its year-end from 30 June to 31 March to align its financial year-end with that of its majority shareholder, Hosken Consolidated Investment Ltd.

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 31 March 2009 pursuant to a rights offer, the group said.

A contributing factor to the results to 31 March 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 31 March 2009 are expected on 18 May.

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