Trading update

15-MAY-14

Also with an announcement, but not results from Tiger Brands, but rather a trading update for the six months to end March. At face value it hardly looks exciting, EPS (excluding once offs) will increase by 6 to 10 percent. Once off? Well, it is something that we knew, right? Dangote Flour Mills, or DFM. The Nigerian business. Dangote of course is surname of Aliko, the richest man in Africa. He sold this business to Tiger and clearly they overpaid. They have decided to "impair the full carrying value of the goodwill and intangible assets relating to the investment." I hear you with a tentative "yes" say, "well, what is the amount?" Here goes, and make sure that you are sitting down: "The value of the impairment amounts to R849 million which will be included in abnormal items in the group income statement for the half year ended 31 March 2014." You can tell that the market was anticipating this, in fact worse, because Tiger Brands share price is up nearly three percent. More when the results are released on the 21st of May. Next week Wednesday.