Dawn: Firm warns of delay, poor results

Distribution and Warehousing Network (Dawn) expects to report significantly lower earnings in the year to June. The local plumbing and hardware brands manufacturer and distributor yesterday attributed this to the impact of additional pressure on consumers and the sharp drop in gross domestic product in the second half of its financial year on the performance of its building segment, as well as impairments of goodwill on its Dawn Kitchen Fitting business and minority equity investment in a Nigerian trading operation. However, its infrastructure business continued to perform in line with expectations. It expects headline earnings a share to be between to 50.9 cents to 47.6c, which is between 23 percent and 28 percent lower than the 66.1c in the previous year. Its earnings a share for the same period are expected to decrease between 50 percent and 55 percent to between 33.4c and 30.0c from 66.7c previously. The group expects to publish its annual financial results on October 14, which is outside the three month period allowed in terms of the JSE listing requirements. Shares plunged 14.68 percent to close at R8.02 yesterday. – Roy Cokayne