JD GROUP LIMITED - Update on the disposal of the Consumer Finance Division, effect on Interim Results and Trading Statement

Update on the disposal of the Consumer Finance Division, effect on Interim Results and Trading Statement

JD Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1981/009108/06)
ISIN: ZAE000030771
JSE code: JDG
("JD Group" or “the Company”)

UPDATE ON THE DISPOSAL OF THE CONSUMER FINANCE DIVISION, EFFECT ON
INTERIM RESULTS AND TRADING STATEMENT IN RESPECT OF THE SIX MONTHS
ENDED 31 DECEMBER 2014

 1. TRADING UPDATE
    As required in terms of paragraph 3.4 of the JSE Limited’s
    Listings Requirements (“Listings Requirements”), shareholders
    are hereby advised that a reasonable degree of certainty
    exists that the Company’s results for the six months ended
    31 December 2014 will be as follows:

    Continuing operations

    The earnings per share from continuing operations for the six
    months ended 31 December 2014 will be between 66.8 and 70.5
    cents per share, which is between 80% and 90% higher than
    that of the comparative period (31 December 2013: earnings of
    37.1 cents per share), while the headline earnings per share
    from continuing operations for the same period will be
    between 67.7 and 72.2 cents per share, which is between 50%
    and 60% higher than that of the comparative period (31
    December 2013: headline earnings of 45.1 cents per share).

    Discontinued operations

    Shareholders are referred to the detailed terms announcement
    published by the Company dated 18 December 2014 pertaining to
    the disposal of the Company’s Consumer Finance Business,
    excluding the Insurance operations (“the Business sale”). The
    circular relating to the Business sale and notice of the
    general meeting for shareholders to consider and if deemed
    fit, approve the Business sale was distributed to shareholders
    on 27 January 2015.

    In terms of International Financial Reporting Standards, the
    disposal group is classified as discontinued operations and
    was written down to its net realisable asset value of R4.7
    billion on 31 December 2014 based on the purchase price
    formula in terms of the Business sale agreement.

    Accordingly, earnings per share for continued and discontinued
    operations for the six months ended 31 December 2014 will be
    a loss of between 543.5 and 550.2 cents per share, which will
    be between 710% and 720% more than that of the comparative
    period (31 December 2013: loss of 67.1 cents per share), while
    the headline loss per share for the same period will be between
    449.2 and 455.1 cents per share, which will be between 660%
    and 670% more than that of the comparative period (31 December
    2013: headline loss of 59.1 cents per share).

    The financial information in this trading statement has not 
    been reviewed or reported on by JD Group’s auditors. The results
    for the six months ended 31 December 2014 will be published on
    or about 2 March 2015.

 2. UPDATE ON THE DISPOSAL OF THE CONSUMER FINANCE DIVISION
    TRANSACTION (DISCONTINUED OPERATIONS)

    The general meeting will be held at 10:00 on Wednesday,
    25 February 2015, at the ID Sussman Auditorium on the Ground
    Floor, JD House, 27 Stiemens Street, Braamfontein. To date,
    the Company has received undertakings and proxies from more
    than 95% of shareholders indicating their support for the
    Business Sale.

    The Company has made the required submissions to the Competition
    authorities and is awaiting feedback. The remaining conditions
    precedent must be fulfilled or waived on or before 31 May 2015.

24 February 2015
By order of the Board
Johannesburg

Sponsor: PSG Capital Proprietary Limited

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