STADIO HOLDINGS LIMITED - Further Trading Statement

Further Trading Statement

STADIO HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2016/371398/06
Share code: SDO
ISIN: ZAE000248662
LEI: 3789007C8FB26515D966
 (“the Company” or “the STADIO Group”)

FURTHER TRADING STATEMENT

The STADIO Group utilises core headline earnings to measure and benchmark the underlying
performance of the business. Core headline earnings represents headline earnings adjusted
for certain non-recurring or non-cash items that, in the Board’s view, may distort the financial
results from year to year.

Further to the initial trading statement issued on 1 July 2020 (“Initial Trading Statement”), the
Board is pleased to report that the core headline earnings per share for the six month period
ended 30 June 2020, will be between 6.5 cents and 7.4 cents, being between 14% and 30%
higher than the 5.7 cents per share reported for the six month period ended 30 June 2019.

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.

Shareholders are referred to the Initial Trading Statement and advised that, as a result of two
abnormal items (further explained below) a reasonable degree of certainty exists that for the
six months ended 30 June 2020, the STADIO Group will report a:

    •   Loss per share of between (9.3) cents and (8.3) cents and a headline loss per share
        of between (2.0) cents and (1.0) cents for the six month period ended 30 June 2020,
        compared to earnings and headline earnings per share of 5.1 cents reported for the
        six month period ended 30 June 2019.

As detailed in the Initial Trading Statement, the loss and headline loss per share were
negatively impacted by the following abnormal, once-off accounting adjustments:

    •   Following the Higher Education Quality Committee approval of the business transfer
        process to migrate the various underlying higher education institutions to one STADIO
        brand, the STADIO Group incurred a R60 million once-off, non-cash accounting
        impairment of trademarks (being the value of the trademarks (excluding Milpark
        Education (Pty) Ltd) recognised at acquisition); and

    •   Following the outperformance in the enrolment of students on the Post Graduate
        Diploma in Accounting (“PGDA”) and the PGDA Bridging programme, and the
        expected increase in the contingent consideration liability due in respect of the CA
        Connect business acquisition, an abnormal, accounting fair value adjustment of R74
        million was recognised for the period. The contingent consideration is payable in
        shares (75%) and cash (25%) and is subject to CA Connect meeting certain profit
        targets over a 3-year period beginning 30 June 2020.

The financial information on which this trading update is based has not been reviewed or
reported on by the Company’s auditors. The interim results for the six-month period ended
30 June 2020 are expected to be published on or about Wednesday, 26 August 2020.

The Company will be hosting a virtual presentation on Wednesday, 26 August 2020, at 12:00
to present the results to investors.

Presentation details:
Please register to attend the presentation ahead of time by clicking on the following link:
https://attendee.gotowebinar.com/register/5729022237452236816

Participants will be able to download the interim results as well as the slides from the portal
during the presentation.

Participants can send through questions using the portal, during and after the presentation,
or may also email questions through ahead of the presentation, or after the event, to
investorrelations@stadio.co.za.


Durbanville
11 August 2020

Sponsor
PSG Capital


Joint independent sponsor
UBS South Africa

Date: 11-08-2020 02:15:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.