Pioneer Foods today received the decision and order of the Competition Tribunal concerning the two complaint referrals brought by the Competition Commission against the Company, known as the Western Cape Bread Complaint and the National Bread Complaint, in which Pioneer Foods' bread baking division was alleged to have colluded with its competitors, amongst others, on bread prices and market division, in the Western Cape and nationally, in contravention of sections 4(1)(b)(i) and (ii) of the Competition Act.
Today the Tribunal ordered Pioneer Foods to pay an administrative penalty of 9.5% of its bread turnover for the Western Cape in the amount of R46 019 954 in respect of the Western Cape Bread Complaint plus an administrative penalty of 10% of Pioneer Foods' total annual bread turnover less the turnover of bread sales in the Western Cape, in the amount of R149 698 660 in respect of the National Bread Complaint, therefore a total administrative penalty of R195 718 614.
The Company will review the findings of the Competition Tribunal and consider its response after which further announcements will be made.
Wednesday, February 3, 2010
Monday, February 1, 2010
Dimension Data Holdings Plc - Interim management statement
Dimension Data Holdings plc, the specialist global IT services and solution provider, today publishes an interim management statement (IMS), covering the trading period from 1 October 2009 to 31 January 2010
Financial Performance and Position
The Group recorded a sound trading performance for the three months to 31 December 2009. Reported turnover reflected an approximately 6% increase in relation to the three months to 31 December 2008.
Key features of the quarter were a solid performance from the Systems Integration (SI) business, in particular a turnaround in the USA, offset by a poor trading result from Plessey.
On a constant currency basis, turnover for the quarter showed an approximately 9% year on year reduction, although sequentially in relation to the preceding quarter turnover was flat.
The turnover performance is consistent with management's expectations, taking into account that Q1 2009 was a very strong comparative period having enjoyed the benefit of a strong order book from the prior year. As a result, the effects of the global economic downturn were only felt by the Group from Q2 2009. Comparisons are therefore expected to become more favourable in the second quarter of this financial year.
As is the Group's practice, for the remainder of the review reference to growth rates will be on a constant currency basis.
By business, SI product turnover was down year on year, while services continued to show growth. By region, Middle East and Africa, Australia and Europe all recorded improved contributions, with a significant improvement in operating profit in the Americas. Asia's contribution reduced slightly in line with investment in the expansion programme outlined at the year end. SI recorded good sequential growth in order rates in relation to the preceding quarter, and the business remains well positioned going into the second quarter.
Internet Solutions grew turnover and improved operating profit in line with expectations. Express Data reported turnover declines against a backdrop of a very strong Q12009, and a stronger Australian Dollar which impacted unit prices.
Plessey had a very weak quarter, reflecting reduced demand from its mobile service provider clients in Africa. In response, the business reduced its cost base, but expects order rates and trading to improve in the second quarter.
There were no major changes to working capital and the Group's cash position remained strong throughout the period.
Outlook
The Group delivered a sound performance for the first quarter of 2010, benefiting in particular from a resilient performance in the SI business.
Looking forward, we are seeing improved demand in some regions, although the overall demand environment by region and business remains mixed. Order intake in the first quarter reflected sequential growth over Q4 2009.
Management's expectation of flat constant currency turnover in the first half of the financial year, and single digit constant currency turnover growth for the full year, is unchanged from when the Group reported its year end results in mid November 2009. This, together with anticipated stable gross margins, means that the Group remains well positioned to deliver on its internal objectives for the half and for the full year.
Assuming no significant exchange rate movements from current levels, the Group's reported results for the first half will benefit from the strength, relative to the comparative period, of its major trading currencies against the US Dollar.
We remain optimistic about the positioning and prospects for Dimension Data both in the short and medium term and continue to see good opportunities for growth in many parts of the Group. We are committed to continue to invest in our execution capabilities and to enhancing our competitive position to capture opportunities in the markets within which the Group operates.
The Group is scheduled to release its annual results for the 6 months to 31 March 2010 on 12 May 2010.
Financial Performance and Position
The Group recorded a sound trading performance for the three months to 31 December 2009. Reported turnover reflected an approximately 6% increase in relation to the three months to 31 December 2008.
Key features of the quarter were a solid performance from the Systems Integration (SI) business, in particular a turnaround in the USA, offset by a poor trading result from Plessey.
On a constant currency basis, turnover for the quarter showed an approximately 9% year on year reduction, although sequentially in relation to the preceding quarter turnover was flat.
The turnover performance is consistent with management's expectations, taking into account that Q1 2009 was a very strong comparative period having enjoyed the benefit of a strong order book from the prior year. As a result, the effects of the global economic downturn were only felt by the Group from Q2 2009. Comparisons are therefore expected to become more favourable in the second quarter of this financial year.
As is the Group's practice, for the remainder of the review reference to growth rates will be on a constant currency basis.
By business, SI product turnover was down year on year, while services continued to show growth. By region, Middle East and Africa, Australia and Europe all recorded improved contributions, with a significant improvement in operating profit in the Americas. Asia's contribution reduced slightly in line with investment in the expansion programme outlined at the year end. SI recorded good sequential growth in order rates in relation to the preceding quarter, and the business remains well positioned going into the second quarter.
Internet Solutions grew turnover and improved operating profit in line with expectations. Express Data reported turnover declines against a backdrop of a very strong Q12009, and a stronger Australian Dollar which impacted unit prices.
Plessey had a very weak quarter, reflecting reduced demand from its mobile service provider clients in Africa. In response, the business reduced its cost base, but expects order rates and trading to improve in the second quarter.
There were no major changes to working capital and the Group's cash position remained strong throughout the period.
Outlook
The Group delivered a sound performance for the first quarter of 2010, benefiting in particular from a resilient performance in the SI business.
Looking forward, we are seeing improved demand in some regions, although the overall demand environment by region and business remains mixed. Order intake in the first quarter reflected sequential growth over Q4 2009.
Management's expectation of flat constant currency turnover in the first half of the financial year, and single digit constant currency turnover growth for the full year, is unchanged from when the Group reported its year end results in mid November 2009. This, together with anticipated stable gross margins, means that the Group remains well positioned to deliver on its internal objectives for the half and for the full year.
Assuming no significant exchange rate movements from current levels, the Group's reported results for the first half will benefit from the strength, relative to the comparative period, of its major trading currencies against the US Dollar.
We remain optimistic about the positioning and prospects for Dimension Data both in the short and medium term and continue to see good opportunities for growth in many parts of the Group. We are committed to continue to invest in our execution capabilities and to enhancing our competitive position to capture opportunities in the markets within which the Group operates.
The Group is scheduled to release its annual results for the 6 months to 31 March 2010 on 12 May 2010.
Merafe - Ferrochrome production for the twelve months ended 31 December 2009
Shareholders of the Company are advised that ferrochrome production for the Xstrata-Merafe Chrome Venture for the year ended 31 December 2009 decreased by 30% compared to the previous comparative period.
This arose as a result of the suspension of up to 80% of production capacity in late 2008 and early 2009 in response to the rapid decline in market conditions.
Production was progressively increased during the year from 20% of annual capacity in early January to approximately 85% by year end, in line with improving demand.
The strengthening of the Rand against the US Dollar during 2009 continued to exert pressure on margins and together with improving demand, enabled ferrochrome producers to achieve a 30% increase in the ferrochrome price from $0.79 per pound in the first quarter of 2009 to $1.03 per pound in the fourth quarter of 2009.
Ferrochrome production attributable to Merafe for 2009 was as follows:
This arose as a result of the suspension of up to 80% of production capacity in late 2008 and early 2009 in response to the rapid decline in market conditions.
Production was progressively increased during the year from 20% of annual capacity in early January to approximately 85% by year end, in line with improving demand.
The strengthening of the Rand against the US Dollar during 2009 continued to exert pressure on margins and together with improving demand, enabled ferrochrome producers to achieve a 30% increase in the ferrochrome price from $0.79 per pound in the first quarter of 2009 to $1.03 per pound in the fourth quarter of 2009.
Ferrochrome production attributable to Merafe for 2009 was as follows:
Year ended Year ended
Ferrochrome production 31.12.2009 31.12.2008
Attributable production (kt) 203 290
Indicative average published price (USCents 85.0 175.8 (USD)/lb)
Indicative average published price (USCents 85.0 175.8 (USD)/lb)
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