ITALTILE LIMITED - Trading Statement for the Six Months Ended 31 December 2015

Trading Statement for the Six Months Ended 31 December 2015

ITALTILE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1955/000558/06)
Share code: ITE   ISIN: ZAE000099123
(“Italtile” or “the Group”)


TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2015

Italtile is currently finalising its results for the six
months ended 31 December 2015.

The Group’s basic earnings per share (“EPS”) will be between
43.7 cents and 45.1 cents, reflecting an increase of between
19% and 23% compared to the previous corresponding period
ended 31 December 2014, being 36.7 cents. Headline earnings
per share (“HEPS”) will be between 42.8 cents and 44.3 cents,
reflecting an increase of between 20% and 24% (2014: 35.7
cents).

System-wide turnover for the six months ended 31 December 2015
will be between 12% and 15% higher than the prior comparative
period (2014: R2.72 billion), while trading profit will be
between 15% and 19% higher (2014: R459 million).

The performance reported for the six months is primarily
attributable to:

  - Management’s commitment to instilling retail excellence
    across the key customer-facing components of the Group’s
    offering, which resulted in improved levels of customer
    satisfaction and increased sales for the period;

  - the benefits realised from implementation of the Business
    Optimisation Programme (“BOP”) in the Group’s Supply
    Chain and Support Services divisions and expansion of the
    programme into the Retail brand operations; and

  - the Group’s strategic investments in its principal local
    suppliers, Ceramic Industries (Pty) Ltd and Ezeetile,
    which delivered pleasing returns and continued to support
    the business’s growth agenda. The total contribution to
    Group profits from these associates rose between 62% and
    65%.

REVIEW OF RESULTS
The information on which this announcement is based has not
been reviewed or reported on by Italtile's auditors.

PUBLICATION OF RESULTS
The Group's results for the six months ended 31 December 2015
are expected to be published on SENS on or about
11 February 2016.


Johannesburg
25 January 2016


Sponsor
Merchantec Capital

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