CSG HOLDINGS LIMITED - Trading Statement

Trading Statement

CSG HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2006/011359/06)
Share code: CSG
ISIN: ZAE000184438
(“CSG” or “the Company”)


TRADING STATEMENT

In terms of the JSE Limited Listings Requirements, a listed company is required to publish a
trading statement as soon as it becomes reasonably certain that the financial results for the
next period to be reported on will differ by 20% or more from the financial results for the
previous corresponding period.

The Company hereby advises that a reasonable degree of certainty exists that for the six
months ended 30 September 2020, the Company expects to report:

                             30 September 2019     30 September 2020     30 September 2020
                                actual (cents)       expected range       expected change
                                  (Note 1)               (cents)                (%)
 Earnings per share
 (“EPS”)                           (5.33)             1.02 to 2.09         119% to 139%
   EPS – continuing
   operations                       1.82              2.21 to 2.57          22% to 42%
   EPS – discontinued
   operations                      (7.15)           (0.12) to (1.55)        78% to 98%

 Headline earnings per
 share (“HEPS”)                    (5.27)             1.03 to 2.08         120% to 140%
   HEPS – continuing
   operations                       1.88              2.22 to 2.60          19% to 39%
   HEPS – discontinued
   operations                      (7.15)           (0.14) to (1.57)        78% to 98%


This increase in EPS and HEPS is mainly due to the improved performance of the security
division due to the aggressive turnaround plan implemented for the underperforming security
companies, the cost cutting measures and salary cuts implemented during the lockdown
period, together with assistance from Government through additional Employment Tax
Incentives (ETI’s) and Skills Development Levy (SDL) payment holidays.

Note 1
As announced on SENS and disclosed in the Company’s results for the year ended 31 March
2020, the Company was in the process of disposing of the 7 Arrows business, and accordingly
the 7 Arrows business has been classified as discontinued operations. The effective date of
the sale was 1 October 2020. The 30 September 2019 results have been restated to reflect
the 7 Arrows business as discontinued operations. The reclassification has no effect on the
30 September 2019 EPS and HEPS, but rather the split between continued and discontinued
operations as set out in the table above.

The financial information on which this trading statement is based has not been reviewed or
reported on by the auditor of the Company. The unaudited interim results for the 6 months
ended 30 September 2020 are expected to be published on or about 20 November 2020.

Pretoria
10 November 2020

Sponsor
PSG Capital

Date: 10-11-2020 10:00:00
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