ONELOGIX GROUP LIMITED - Trading statement

Trading statement

ONELOGIX GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/004519/06)
JSE share code: OLG ISIN: ZAE000026399
(“OneLogix” or the “Company” or the “group”)


TRADING STATEMENT


The COVID-19 lockdown and associated fallout reversed a moderate earnings growth post the first six
months of the current year, to the extent that shareholders are advised that OneLogix expects changes
in earnings and diluted earnings per share (“EPS”), headline and diluted headline earnings per share
(“HEPS”) and core headline and diluted earnings per share (“Core HEPS”) for the year ended 31 May
2020 within the ranges reflected in the table below:

                                      Impact of
                    Previously      adoption of
                  reported, 31       IFRS16 on     Restated 31                          31 May 2020
                     May 2019     31 May 2019       May 2019          31 May 2020           expected
                         (cps)     results (cps)         (cps)      expected range       range (cps)

                                                                        Decrease of
                                                                    between 50% to
 EPS                       37.2            (5.7)           31.5               60%         12.6 to 15.8
                                                                        Decrease of
                                                                    between 40% to
 HEPS                      37.3            (5.7)           31.6               50%         15.8 to 19.0
                                                                        Decrease of
                                                                    between 35% to
 Core HEPS                 43.7            (5.7)           38.0               45%         20.9 to 24.7


Notes:

1. With effect from 1 June 2019, the group adopted IFRS 16 whereby right-of-use assets and
   associated liabilities for its operating leases of vehicles and properties have been recognised. The
   nature of expenses related to those leases has changed as the group now incurs depreciation charges
   for the right-of-use assets and interest expenses on the lease liabilities. Previously, the group
   recognised operating lease expenses on a straight-line basis over the term of the leases.

  In order to enable more meaningful comparability of performance the group has applied the full
  retrospective approach whereby historic comparative information has been restated. IFRS 16 has no
  impact on the income statement over the full lease term but is earnings dilutive towards the
  beginning of the relevant lease term and earnings enhancing towards the end of the lease term. The
  group is on average at the beginning stages of most of its leases and hence the reduction in all
  earning metrics in the previous period. Cash outflows associated with the adoption of IFRS 16
  regarding the payment of the lease obligations did not and will not change going forward.


2. EPS differs from HEPS primarily due to an after-tax R3.6 million impairment charge related one of
   the group’s owner-occupied properties. The carrying value of the remaining properties within the
   group were either in line or less than the independent valuation undertaken and consequently an
   after-tax R17.1 million upward revaluation was recognised in other comprehensive income and
   credited to the revaluation reserve in equity which is excluded from all earnings per share metrics.

3. Consistent with prior reporting the company aims to present to shareholders the same information
   that management utilises to evaluate the performance of the group's operations. Accordingly,
   OneLogix presents Core HEPS, which is headline earnings (as calculated based on SAICA Circular
   1/2019) adjusted for the amortisation charge of intangible assets recognised on business
   combinations and charges relating to equity-settled share-based payments.

The financial information contained in this announcement has not been audited, reviewed or reported
upon by the group's external auditors.

The group's audited results for the year ended 31 May 2020 are scheduled to be released on or about
17 September 2020.


5 August 2020

Sponsor
Java Capital

Date: 05-08-2020 01:00:00
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