THE SAVANNAH SUGAR ESTATES COMPANY LIMITED
UNAUDITED PRELIMINARY REPORT
YEAR ENDED JUNE 30, 2005
A Summary of the Financial Statements of the Group and of the Company for the year ended June 30, 2005 together with the comparative figures for the period ended June 30, 2004 is given below.
1. UNAUDITED ABRIDGED INCOME STATEMENTS
		THE GROUP		THE COMPANY
		Year ended	Eighteen months ended	Year ended	Eighteen months ended
		June 30,	June 30,	June 30,	June 30,
		2005	2004	2005	2004
Turnover		316,035	288,660	302,880	262,032
Operating Profit/(Loss)		67,569	(25,930)	74,961	(19,120)
Other income		16,551	9,339	28,636	32,318
Finance costs		(101,845)	(135,618)	(76,045)	(94,997)
Loss before exceptional items		(17,726)	(152,209)	27,551	(81,799)
Exceptional items		33,092	3,536	26,592	3,536
Amortisation of deferred expenditure		(26,327)	(3,255)	(24,151)	-
(Loss)/ Profit after exceptional items		(10,961)	(151,928)	29,993	(78,263)
Share of results of associates net of amortisation of goodwill		(38,494)	(17,886)	-	-
(Loss) / Profit before taxation		(49,455)	(169,814)	29,993	(78,263)
Taxation charge		(5,097)	(1,771)	-	(253)
(Loss)/Profit after taxation		(54,551)	(171,585)	29,993	(78,516)
Minority interests		1,113	3,718	-	-
(Loss)/Profit for the year attributable to the shareholders of
The Savannah Sugar Estates Company Limited		(53,439)	(167,867)	29,993	(78,516)
2. UNAUDITED ABRIDGED BALANCE SHEETS
		THE GROUP		THE COMPANY
		June 30,	June 30,	June 30,	June 30,
		2005	2004	2005	2004
ASSETS EMPLOYED		Rs'000	Rs'000	Rs'000	Rs'000
Non-current assets
Property,plant and equipment		1,232,491	600,956	1,229,462	598,805
Deferred expenditure		69,639	100,208	33,723	62,235
Investment Property		10,096	10,412	10,096	10,412
Intangible Assets		20,550	15,708	20,550	15,708
Biological assets		72,097	75,795	72,097	75,795
Available for sale securities                                                     - subsidiary companies		-	-	-	21,400
- associated companies		751,358	849,283	632,739	633,098
- other securities		11,750	22,700	11,750	22,700
Non-current receivables		81,533	8,415	81,533	8,415
		2,249,515	1,683,477	2,091,951	1,448,568
Current Assets		467,743	375,106	526,988	447,082
Total Assets		2,717,258	2,058,583	2,618,939	1,895,650
EQUITY AND LIABILITIES
Share capital		43,920	43,920	43,920	43,920
Reserves		1,318,255	723,344	1,542,907	944,299
Shareholders' interests		1,362,176	767,264	1,586,828	988,219
Minority interests		-	1,113	-	-
Non-current liabilities		425,867	469,570	387,662	417,375
Current Liabilities		929,216	820,636	644,449	490,056
Total Equity and Liabilities		2,717,258	2,058,583	2,618,939	1,895,650
3. UNAUDITED STATEMENT OF CHANGES IN EQUITY
THE GROUP		Share	Revaluation	Revenue	Associated	Total
		Capital	and other	Reserves	Companies
			reserves
		Rs'000	Rs'000	Rs'000	Rs'000	Rs'000
Balance at January 1, 2003
- as previously stated		43,920	627,650	122,030	(128,963)	664,637
-effect of change in accounting policy		-	-	(27,213)	-	(27,213)
-effect of adopting IAS 41		-	-	242,327	8,958	251,285
-as re-stated		43,920	627,650	337,144	(120,005)	888,709
Transfer from profit and loss account		-	4,667	(4,667)	-	-
Release for the period		-	(4,667)	4,667	-	-
Consolidation adjustments		-	-	-	(39,483)	(39,483)
Release to profit and loss on disposal of available for sale securities		-	(61)	-	-	(61)
Fair value adjustments		-	85,106	-	-	85,106
Transfer on disposal of land		-	(2,927)	2,927	-	-
Other movements		-	22,821	-	-	22,821
Group loss for the period		-	-	(94,105)	(73,763)	(167,868)
Dividends		-	-	(21,960)	-	(21,960)
Balance at June 30, 2004		43,920	732,589	224,006	(233,251)	767,264
Balance at July 1, 2004		43,920	732,589	224,006	(233,251)	767,264
Transfer from profit and loss account		-	1,556	(1,556)	-	-
Release for the year		-	(1,556)	1,556	-	-
Surplus on revaluation of land		-	643,813	-	-	643,813
Transfer to retained earnings on disposal of land		-	(1,378)	1,378	-	-
Fair value adjustments		-	(9,863)	-	35,110	25,247
Changes in net assets of associated companies		-	-	-	(502)	(502)
Movement on currency translation		-	-	-	1,753	1,753
Profit/(loss) for the year		-	-	21,465	(74,904)	(53,439)
Dividends		-	-	(21,960)	-	(21,960)
Balance at June 30, 2005		43,920	1,365,161	224,889	(271,794)	1,362,176
THE COMPANY
		Share	Revaluation	Revenue	Total
		Capital	and other	Reserves
			reserves
		Rs'000	Rs'000	Rs'000	Rs'000
Balance at January 1, 2003
-as previously stated		43,920	507,469	220,205	771,594
-effect of change in accounting policy		-	-	(27,212)	(27,212)
-effect of adopting IAS 41		-	-	242,327	242,327
-as re-stated		43,920	507,469	435,320	986,709
Transfer from profit and loss account		-	4,667	(4,667)	-
Release for the period		-	(4,667)	4,667	-
Release to profit and loss account on disposal of available for sale securities		-	-	86	86
Fair value adjustments		-	101,900	-	101,900
Transfer on disposal of land		-	(2,927)	2,927	-
Loss for the period		-	-	(78,516)	(78,516)
Dividends		-	-	(21,960)	(21,960)
Balance at June 30, 2004		43,920	606,442	337,857	988,219
Balance at July 1, 2004		43,920	606,530	337,769	988,219
Transfer from profit and loss account		-	1,556	(1,556)	-
Release for the year		-	(1,556)	1,556	-
Surplus on revaluation of land		-	643,813	-	643,813
Transfer to retained earnings on disposal of land		-	(1,378)	1,378	-
Fair value adjustments		-	(53,237)	-	(53,237)
Other movements		-	-	-	-
Profit for the year		-	-	29,993	29,993
Dividends		-	-	(21,960)	(21,960)
Balance at June 30, 2005		43,920	1,195,728	347,180	1,586,828
4. UNAUDITED CASH FLOW STATEMENTS		THE GROUP		THE COMPANY
		Year ended	Eighteen months ended	Year ended	Eighteen months ended
		June 30,	June 30,	June 30,	June 30,
		2005	2004	2005	2004
		Rs'000	Rs'000	Rs'000	Rs'000
Cash flows from operating activities		25,519	39,907	(878)	(10,826)
Cash flows from investing activities		(40,308)	18,632	(38,802)	(1,460)
Cash flows from  financing activities		(140,274)	(125,186)	(106,822)	(46,041)
Increase/(Decrease) in cash and cash equivalents		(155,063)	(66,647)	(146,502)	(58,327)
Cash and cash equivalents at July 1, 2004/January 1, 2003		(442,325)	(375,678)	(291,580)	(233,253)
At June 30,		(597,388)	(442,325)	(438,082)	(291,580)
		THE GROUP		THE COMPANY
		2005	2004	2005	2004
(Loss)/Earnings per share	Rs	(12.17)	(38.22)	6.83	(17.88)
Net asset value per share	Rs	310.15	174.69	361.30	225.00
Dividend per share	Rs	5.00	5.00	5.00	5.00
Number of shares of Rs 10 used in calculation		4,392,036	4,392,036	4,392,036	4,392,036
NOTES
1. The abridged financial statements which are unaudited have been prepared in accordance with International Financial     Reporting Standards.
2. This year's accounts show an operating profit of Rs67m as compared with an operating loss of Rs 26m at June 30, 2004. It must be noted that the accounts at June 30, 2004, which covered an eighteen months' period, included revenues from one crop year whilst accounting for eighteen months expenses.
The company revalued its freehold land based on a report prepared by professional valuers and the directors have decided to account for  50% of the valuation.  This gave rise to a valuation surplus of Rs. 689m.
The share of results of associated companies were adversely affected by the losses incurred by Sena Development & its subsidiary Companhia de Sena and by the lower profits of Société Usinière du Sud which impaired part of its factory equipment.
3.  Copies of the preliminary report are available free of charge to the public at the registered office of the company at 7th Floor, Swan Group Centre, Intendance Street, Port Louis
BY ORDER OF THE BOARD
JULIEN HOAREAU
for ESPITALIER NOEL LTD
Secretaries
"This communiqué is issued pursuant to Listing Rule 12.20"
The Board of Directors of The Savannah Sugar Estates Co Ltd accepts full responsibility for the accuracy of the information contained in this communiqué

:colspan'> Total Assets           2,717,258       2,058,583           2,618,939        1,895,650 EQUITY AND LIABILITIES Share capital                43,920             43,920                43,920              43,920 Reserves           1,318,255