FOR IMMEDIATE RELEASE
22 January 2002
On 2 November 2001, Contact’s Independent Directors released the Target Company Statement in relation to the takeover offer from Mission Energy Five Star Holdings. The Target Company Statement included a projection of Contact’s net surplus for the year to 30 September 2002 based on the company‘s draft business plan.
Contact’s Independent Directors note that indicative results for the first quarter of the financial year have now been collated by management. These show that Contact’s performance is tracking close to, but slightly below, the draft business plan projection included in Contact’s Target Company Statement.
“The primary reasons for the slight deterioration in trading performance are the softer than expected spot prices and lower thermal generation volumes that prevailed during the three month period to 31 December 2001. While these have dampened Contact’s revenues to date relative to the draft business plan, the shortfall has largely been offset by expense reductions” said Contact’s Chair and Independent Director, Mr Phil Pryke.
“Contact tends to earn the majority of its net income during the second half of the financial year. At this stage, there is no information to suggest that the recent market conditions will persist into the winter period” said Mr Pryke.
“For this reason, we currently expect Contact’s actual net surplus for the year to be at, or close to, the projection included in the Target Company Statement.”