DGC
DGC                                                                             
DGC - Digicore Holdings Limited - Trading statement                             
DIGICORE HOLDINGS LIMITED                                                       
Registration number: 1998/012601/06                                             
Share Code: DGC                                                                 
ISIN Number: ZAE000016945                                                       
("DigiCore")                                                                    
TRADING STATEMENT                                                               
In terms of the Listing Requirements of the JSE Limited, a listed company is    
required to publish a trading statement as soon as it becomes apparent that     
headline earnings per share and/or earnings per share for the next period to be 
reported on are expected, with a reasonable degree of certainty, to differ by at
least twenty per cent (20%) from those of the previous corresponding period.    
Shareholders are advised that DigiCore`s headlines earnings per share and       
earnings per share for the twelve months ended 30 June 2009 are expected to     
decrease by between forty percent (40%) and fifty per cent (50%) compared with  
the headline earnings per share of 64,7 cents per share and earnings per share  
of 68,7 cents per share for the comparative period in 2008.                     
The reduction in earnings has largely resulted from the decrease in medium and  
heavy commercial vehicle sales in South Africa (approximately 48,2% in the last 
six months) and the decrease in global vehicle production (approximately 33%    
year on year), which has resulted in the decrease in new C-track units sold     
locally and globally.                                                           
Earnings have also been impacted by fluctuations in the Rand during the last two
years that have resulted in a foreign exchange loss for the current year,       
compared to a foreign exchange profit in the comparative period. In addition    
profit on the expropriation of the head office land and buildings increased     
earnings in the comparative period and was not repeated in the current year. The
result of the two above-mentioned items decreased earnings in the current year  
by approximately twelve per cent (12%).                                         
As a group we are determined to maintain a balanced approach between generating 
value for our shareholders, cost cutting initiatives and retaining our skilled  
employees. We are therefore not currently considering embarking on any          
retrenchment programmes.                                                        
We have continued to expand our growth potential in various areas, including    
employing 18 more R&D personnel to ensure that our software remains the most    
powerful in the industry and opening three "lifestyle" fitment centres for our  
Stolen Vehicle Recovery products. However the return on these initiatives will  
only be seen in future reporting periods once the global economy starts to      
recover.                                                                        
We are of the opinion that the trading conditions will remain tough for the next
12 months, although an improvement has already been seen in tender activity in  
South Africa after the national elections. Purchasing activity by large         
corporations in Europe also appears to be increasing. Opportunities in the      
Stolen Vehicle Recovery market also seem to be improving slightly               
We can say with confidence that, with the new C-track products currently being  
launched and other initiatives we have invested in, our business remains sound  
and ready to improve when the global economy turns.                             
The financial results on which this trading statement has been based and the    
commentary in this announcement has not been reviewed or reported on by the     
company`s auditors.                                                             
DigiCore`s results for the year ended 30 June 2009 will be released on SENS on  
or about 9 September 2009.                                                      
7 August 2009                                                                   
Sponsor                                                                         
PSG Capital (Pty) Limited                                                       
Date: 07/08/2009 15:15:27 Produced by the JSE SENS Department.                  
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