Simeka BSG gains on update

Johannesburg, 19 Jun 2007

Shares in black empowered solutions provider Simeka BSG gained 8% to close at R1.55 yesterday.

The gain followed a market update that said its full-year results, expected late July, would be significantly up on the previous year's figures.

In the notice to shareholders, Simeka BSG said it expected revenue for the full year ended 31 May to be between 25% and 35% higher than the R326 million posted in 2006. Cash and cash equivalents are expected to be between 135% and 144% higher than the R16.5 million reported last year.

Headline earnings will be between 70% and 85% higher than the R25 million delivered in 2006. However, headline earnings per share should only be 30% to 40% higher than the 11.33c per share reported last year. This is due to weighting of both shares in issue and shares to be issued.

Yesterday, over four million Simeka BSG shares changed hands as the company's share price hit its 12-month high of R1.58 before closing at R1.55. The company is expected to publish its financial results on or about 25 July.