SENS

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Trading update

10 February 2009

Petmin announces a trading update for the six months ended 31 December 2008, in accordance with the JSE’s listing requirements, which stipulate that a company has to publish a trading statement if an increase or decrease of more than 20% (compared with the previous reporting period) in its basic earnings per share and headline earnings per share is expected.

Shareholders of Petmin are hereby advised that headline earnings per share for the six months ended 31 December 2008 are expected to be approximately 11 cents per share, up from 6.38 cents per share for the six months ended 31 December 2007, an increase in excess of 70%. This growth in headline earnings per share was achieved as a result of:

1. the anthracite division delivering additional profits from increased sales volumes and improved prices received on the export market;
2. sales volumes at the SamQuarz silica mine increasing, largely from additional sales to the construction sector.

Basic earnings per share for the six months ending 31 December 2008 are expected to be greater than 15 cents per share, down 22% from 19.30 cents per share for the six months ended 31 December 2007. The difference between the headline and basic earnings per share is due to the IFRS fair value valuation on the acquisition of 25% of Veremo Holdings Limited (“Veremo”), resulting in a share of profit of equity accounted investee of R33 million being recognised in the six months to 31 December 2008 compared to R62 million being recognised in the six months ended 31 December 2007.

Impairment losses of R14.7 million were recognised in the six months ended 31 December 2008 (2007: nil). The carrying value of the Springlake assets were impaired by R13.4 million as the proceeds emanating from the sale of Springlake (expected to be approximately R150 million), less costs to sell is less than the carrying value of Springlake in Petmin’s consolidated balance sheet. Goodwill of R1.3 million was impaired on the acquisition of the remaining 30% of Petmin Logistics.

The Company’s gearing at 31 December 2008 is anticipated to be 7%. (This is prior to the cash inflow arising from the Springlake Sale).

This trading statement, SENS announcement and RNS announcement has not been reviewed or audited by the Company’s auditors.

It is anticipated that Petmin’s results to 31 December 2008 will be published before 3 March 2009.

Sponsor
River Group
+27 12 346 8540
Andrew Lianos/Estine van der Merwe