ITALTILE LIMITED - Trading Statement for the Year Ended 30 June 2016

Trading Statement for the Year Ended 30 June 2016

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 YEAR ENDED 30 JUNE 2016


Italtile is currently finalising its results for the year
ended 30 June 2016.

The Group’s basic earnings per share (“EPS”) will be between
86.5 cents and 89.6 cents (2015: 75.9 cents), representing an
increase of between 14% and 18% compared to the previous
corresponding period ended 30 June 2015. Headline earnings
per share (“HEPS”) will be between 85.2 cents and 88.1 cents
(2015:   71.6 cents), representing an increase of between 19%
and 23% compared to the previous corresponding period ended
30 June 2015.


Earnings growth includes the impact of the following:

  - The    increased     contribution    of    R96     million
    (2015:   R62 million) to Group profit from associates
    Ceramic Industries Proprietary) Limited and Ezee Tile;

  - Net finance income of R23 million (2015: R11 million)
    attributable to improved average net cash holdings of the
    Group;

  - A normalisation of the effective taxation rate as non-
    recurring taxation benefits were recorded in the previous
    corresponding period; and

  - The absence of once-off gains of R33 million (adjusted
    for in headline earnings) reported in the previous
    corresponding period derived from:

    -   the reclassification of a subsidiary (SER-Export
        s.p.a.) to an associate following the disposal by
        the Group of a portion of its shareholding in this
        company (gain of R14 million); and

    -   the reclassification to income of foreign currency
        translation reserve related to Italtile Mauritius
        Proprietary Limited, previous bearer of certain of
        the Group’s non-South African trademarks, following
        the liquidation distribution of that company’s net
        assets to South Africa (gain of R19 million).

System-wide turnover for the year ended 30 June 2016 will be
between 13% and 15% higher than the prior comparative period
(2015: R5.22 billion).

This solid performance reported for the year is attributable
to continued expansion of the Group’s Business Optimisation
Programme across key areas of the Group, which facilitated
further improvements within the business and a gain in market
share from competitors.


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 year ended 30 June 2016 are
expected to be published on SENS on or about 25 August 2016.


Johannesburg
28 July 2016

Sponsor
Merchantec Capital

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