GRAND PARADE INVESTMENTS LIMITED - Trading Statement

Trading Statement

GRAND PARADE INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1997/003548/06)
Share code: GPL
ISIN: ZAE000119814
(“GPI” 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 aware that the financial results for the financial
period to be reported on next will vary by 20% or more from those of the previous comparable
period.

In March 2020 the South African Government instituted a national lockdown to limit the
spread of the Coronavirus. Under the restrictions imposed, all GPI’s operational businesses
were shut down for the month of April. Burger King resumed limited trading in May through
home delivery only, with all service modes resuming in June. The gaming businesses,
SunWest and Sun Slots, remained closed from the end of March to the end of June, and only
resumed operations in July under restrictive operational controls.

During this time management has acted swiftly to reduce costs and preserve cash through
inter-alia the following initiatives:

   •     Reduced Salaries across the group;
   •     Implemented temporary layoffs and reduced working hours;
   •     Negotiated with landlords for rental holidays;
   •     Actively engaged with lenders to prevent covenant breaches;
   •     Accelerated sales of non-core assets;
   •     Renegotiated trading terms with creditors during the lock down period; and
   •     Cancelled all non-essential services.

Despite the actions taken to reduce costs, the lockdown had a material impact on the
operating performance of the GPI group, and accordingly, GPI hereby advises that a
reasonable degree of certainty exists that in respect of the year ended 30 June 2020:

   •     basic loss per share will be between 27.52 and 29.22 cents per share, compared to
         the basic loss per share of 8.48 cents reported for the comparable period ended 30
         June 2019; and

   •     headline loss per share will be between 13.18 and 14.96 cents per share, compared
         to the headline earnings per share of 8.91 cents reported for the comparable period
         ended 30 June 2019.

Despite the tough operating conditions over the last six months, GPI has continued to make
progress in its plan of selling assets, paying down debt and returning capital to shareholders
as a dividend-active company. The previously announced sales of Burger King South Africa
and Grand Foods Meat Plant for a combined enterprise value of R593 million, and the sale of
the 33 Heerengracht property for R90 million are all ongoing. The value to be realised from
these disposals is greater than the Group’s current outstanding debt. We remain fully focused
on completing these sales to reduce debt and become dividend-active once more.

The financial information on which this trading statement is based has not been reviewed or
reported on by GPI’s external auditors. The financial results for the period ended 30 June
2020 will be published on or about 23 September 2020.

Cape Town
14 September 2020

Sponsor and corporate advisor:
PSG Capital

Date: 14-09-2020 03:00:00
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.