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The JSE has identified and stopped "incorrect" trades from one of its members, and will reverse the trades and lower the session's total value after the close.
Cape Town - Seardel, the clothing and textile conglomerate, has finished the half-year to end December 2008 deep in the red.
A trading update released late on Friday warned that interim losses would come in between R155m to R185m, while headline losses would range between R145m to R170m. These losses would translate into a loss of roughly 50c/share.
The update should not really come as a shock as Seardel chairperson Johnny Copelyn advised shareholders at an AGM last month that there was no quick fix for Seardel.
Copelyn is the CEO of Hosken Consolidated Investments (HCI), which last year took a controlling stake in Seardel after underwriting a R300m rights issue.
Some punters, though, may be disappointed with the trading update. There have been suggestions that Seardel would be a major beneficiary of a weaker rand - which would make imported garments and textiles less attractively priced as well as boost the group's export revenues.
Possibly, the influence of the weaker rand may have a more pronounced influence on Seardel in the second half when the effects of cost cutting and corporate restructuring should also flow through.
Speaking at the recent AGM Copelyn noted that the weakening in the rand against major currencies could help Seardel, but cautioned shareholders around expecting too much of an improvement at Seardel in the short term.
- Fin24.com