Phumelela expects lower earnings..

Phumelela announced that it expects headline earnings per share for the twelve months ended 31 July 2009 to be between 15% and 25% lower, and basic earnings per share, that included the R27.8 million profit on disposal of the Bloemfontein Racecourse in the prior year, to be between 30% and 40% lower than the prior comparative period, using accounting policies consistent with those used in the comparative period. The release of the announcement of the results for the twelve-month period ended 31 July 2009 is expected to be on 5 October 2009.Original Note

Nothing left to sell. except for a few expensive Original Paintings.

They can sell Turfontein surely?

Sell it and then lease back could be an option for them?

What will these earnings do to the dividend and share price?

busy selling of the carpark behind the marble arch...?
a shopping centre is going up there...?????

ABC mod Wrote:

---

> Phumelela announced that it expects headline
> earnings per share for the twelve months ended 31
> July 2009 to be between 15% and 25% lower, and
> basic earnings per share, that included the R27.8
> million profit on disposal of the Bloemfontein
> Racecourse in the prior year, to be between 30%
> and 40% lower than the prior comparative period,
> using accounting policies consistent with those
> used in the comparative period. The release of the
> announcement of the results for the twelve-month
> period ended 31 July 2009 is expected to be on 5
> October 2009.Original Note


Check my post "a few numbers in horse racing" original post Andrewest. This is old news. Check what they said bout their international ventures. Now thats worth questioning the above.

Somber news for LOCAL info, but meanwhile back at the ranch


Latest Results Highlights
Revenue from international operations UP 56%
PBT from international operations UP 30%
Dividend maintained at 25 CENTS PER SHARE (Prob for the local sods)

Saw something similar on the GC website saying turnover was R30m down,but through savings etc they are only R6m down on expected..

Now thats what makes me angry..dividends should be down.

Wait for next year..

unless Phumelela embarks on a "PUNTER" recruitment program, the end will be swift.

the share price will nose dive by 2010 november to less than half the current share price...?????

If I understand the business correctly, the mainstream of Phumelela income is from punters on the tote pools, be it international or national.


without income, or falling income, or reduced income, or less income, the monthly expenses will make them capsize.

the monthly salaries is the worrying factor.

can someone get a income and expenses statement from Phumelela.
It's a listed company, hence this info should be freely available.

would like to see what salary percentages of turnover amounts to.

management of most South African companies should be charged under the RACKETEERING LAWS for looting the companies via salary payments that exceed 16.5% of turnover.

the high salary bills cause the share price to fall.
the minimum sentence is 15 years under these laws.

what is the difference between the current guys, (like J A Brown of Fedentia, and the guy that ducked to AUS) and the existing companies being looted.

in both cases, the company folds, leaving the investors without money.

its not legal for the MD and management team to draw all the company's money and spend it on ....they will be booked...jail...

but its legal for the MD and management team to pay all the company's money to themselves as salaries....RACKETEERING...LOOTING...LAW states 15 years..

I would assume that the executive management of phumelela has their salaries listed in either their AGM notes and/or with the exchange commision as is the new rules.

We should be able to see what they are paid compared to what their turnover per annum is.

I'm trying to find their income within their financial statements or with the JSE, both are proving hard to do from the US.

I do remember in the old days the General Manager of TAB being paid peanuts for the job he was doing because he was considered a "government official".....How times have changed!!!

Just FYI............

The executive directors at Phumelela earn between 1.4 million and 1.9 million rand a year.............I wonder if they earn even a quarter of that money!!

the executive directors can earn R8m per year.
the salary paid equals the market related salary scale.

its the 100's of extra expenses (unwritten/un documented perks) around the salary that is being questioned.

see SABC..pertol card at R70k per month..

the trick is to find salaries expressed as CTC (cost to company).
they normally advertise the salary as ctc.
then we need to add the bonus for each guy.
my guess is
salaries ctc > 30% of gross turnover.

next year, the stake money per race will drop.
perhaps even less races per meeting....7..max 8....

the punters are being retrenched
punters have less cash

Pumelela salaries + bonus increase
the tote turnover is down already
Phumelela turnover is down already

next year more race meetings per day
next year less races per meeting
then less stake money per race

still profitable to buy race horse?