ACCENTUATE LIMITED - Restatement of Financial Information and Trading Statement for the Year Ended 30 June 2017

Restatement of Financial Information and Trading Statement for the Year Ended 30 June 2017

Accentuate Limited
(Incorporated in the Republic of South Africa)
(Registration number 2004/029691/06)
Share code: ACE
ISIN: ZAE000115986
(“Accentuate” or “the Company”)

RESTATEMENT OF FINANCIAL INFORMATION AND TRADING STATEMENT FOR THE YEAR
ENDED 30 JUNE 2017

RESTATEMENT OF FINANCIAL INFORMATION

The board of directors of the Company (“the Board”) hereby advises shareholders that in terms of
International Accounting Standard 36 Impairment of assets of the International Financial Reporting
Standards it is required that impairment reviews on goodwill should be conducted on an annual basis.
The Company performed impairment calculations in which the recoverable amounts of the fixed
assets were based on value in use principles.

Furthermore, the impairment calculation was performed on identified cash generating units in the
Group, namely Floorworx and Safic. The Board has been advised by its new auditors that in the
presentation of its results for the twelve months ended 30 June 2016, the cash flows utilised to
perform the impairment calculations did not include head office management fees allocated to the
cash generating units by Accentuate Management Services. The exclusion of the management fees
is an error that requires a restatement of the result of the prior year.

The effect of the above on the 30 June 2016 results after restatement for the impairment of goodwill is
as follows:
                                                                                                       Previously
                                                                            Restated                    reported
                                                                           Year ended                  Year ended
                                                                          30 June 2016   Adjustment   30 June 2016
                                                                              R'000        R'000          R'000
                                                                              Group        Group          Group
Effect on the consolidated statement of financial position:

ASSETS
Non-current assets                                                            54 279     (36 963)        91 242
Property, plant and equipment                                                 50 191            -        50 191
Goodwill                                                                           -     (36 963)        36 963
Intangible assets                                                              1 663            -         1 663
Deferred taxation                                                              2 425            -         2 425

Current assets                                                               148 242            -       148 242
Inventories                                                                  104 147            -       104 147
Trade and other receivables                                                   37 201            -        37 201
Other financial assets                                                         1 913            -         1 913
Taxation receivable                                                            4 800            -         4 800
Cash and cash equivalents                                                        181            -           181

Total Assets                                                                 202 521     (36 963)       239 484

EQUITY AND LIABILITIES
Total equity                                                                 116 506     (36 963)       153 469
Share capital                                                                137 950            -       137 950
Revaluation reserve                                                           22 020            -         22 020
Share-based payment reserve                                                      334            -            334
Accumulated loss                                                            (43 798)     (36 963)        (6 835)

Non-current liabilities                                                        7 312            -         7 312
Deferred taxation                                                              7 312            -         7 312

Current liabilities                                                           78 703            -        78 703
Trade and other payables                                                      48 007            -        48 007
Operating lease liabilities                                                    2 252            -         2 252
Other financial liabilities                                                        -            -             -
Current tax payables                                                              84            -            84
Bank overdraft                                                                28 360            -        28 360

Total equity and liabilities                                                 202 521     (36 963)       239 484
                                                                                                    
Effect on the consolidated statements of comprehensive income:

Impairment of goodwill                                                      (36 963)     (36 963)             -
Profit before tax                                                           (26 382)     (36 963)        10 581
Profit after tax                                                            (29 438)     (36 963)         7 525

Effect on earnings per share
Earnings per share (cents)                                                   (24.77)      (31.10)          6.33
Diluted earnings per share                                                   (22.44)      (28.18)          5.74
Headline earnings per share                                                    6.32            -           6.32
Diluted headline earnings per share                                            5.73            -           5.73
Net asset value per share                                                     98.03       (25.97)        124.00

TRADING STATEMENT

In terms of the Listings Requirements of JSE Limited, companies are required to publish a trading
statement as soon as they become reasonably certain that the financial results for the period to be
reported upon will differ by 20% or more from that of the previous corresponding period.

Earnings per share is expected to be between 0.65 cents and 0.75 cents per share and headline
earnings per share is expected to be between 0.70 cents and 0.80 cents per share. The
corresponding period reflected a restated loss in earnings per share of 24.77 and unadjusted headline
earnings per share of 6.32 cents.

The financial information on which this trading statement is based has not been reviewed or reported
on by the Company’s auditors. Accentuate’s year end financial results are expected to be released on
SENS on 29 September 2017.

Johannesburg
27 September 2017
Sponsor: Bridge Capital Proprietary Limited

Date: 27/09/2017 09:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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