TRUSTCO GROUP HOLDINGS LIMITED - Trading statement

Trading statement

TRUSTCO GROUP HOLDINGS LIMITED

Incorporated in the Republic of Namibia

and registered as an external company in South Africa

(Registration number 2003/058)

(External registration number 2009/002634/10)

NSX share code: TUC

JSE share code: TTO

ISIN Number: NA000A0RF067

(“Trustco” or “the Group”)


TRADING STATEMENT FOR THE FINANCIAL YEAR ENDED 31 MARCH 2018


Trustco shareholders (“Shareholders”) are advised that the Group is finalising its annual financial statements

(“AFS”) for the year ended 31 March 2018.


The Group expects to report the following for the year ended 31 March 2018:


     -  A decrease in revenue of between 30% and 40%, being revenue of between NAD 0.748 billion and
        NAD 0.873 billion, compared to the financial year ended 31 March 2017 (“prior year”). The prior
        year’s revenue was NAD 1.247 billion;


      - A decrease in headline earnings per share of between 55% and 65%, being headline earnings per
        share of between 24.76 cents and 31.84 cents compared to the prior year. The prior year’s headline
        earnings per share was 70.75 cents; and


     - A decrease in basic earnings per share of between 60% and 70%, being basic earnings per share of
        between 20.73 cents and 27.64 cents compared to the prior year. The prior year’s basic earnings per
        share was 69.11 cents.


The group’s results were impacted by the following key factors in the 2018 financial period:
   -   The Namibian economy is still in a technical recession, having experienced average quarterly
       contractions of 0.7% over the reporting period. This negatively impacted the liquidity of the market
       and the purchasing power of consumers in Namibia.


   -   As part of a convertible loan agreement concluded during the financial period, an additional 55
       million shares were issued, which affected basic earnings and headline earnings per share.


   -   The investment division of the insurance segment reported a decrease in revenue in comparison to
       the prior year, specifically in its property investments, as the Group did not enter into any large
       property transactions with developers for the year under review. However, the property
       investments increased its collections on its receivables. Additionally the City of Windhoek
       Municipality approved the establishment of a new industrial township for Windhoek, the capital city
       of Namibia (refer to Lafrenz Update SENS of 16 February 2018). The increase in fair value of the
       Lafrenz Township thus compensated for the decrease in earnings during the financial period.


   -   The Group also disposed of 20% of its shareholding in the insurance segment on 29 March 2018 for
       an amount of NAD 1.2 billion. The disposal does not constitute a change in control in either the
       Group or Legal Shield Holdings (Pty) Ltd. The proceeds received was used to strengthen the capital
       base of the Group.


   -   The banking and finance segment experienced an increase in non-performing loans which albeit an
       increase are still below industry norm. Another contributing factor for slower growth was as a result
       of increases in the cost of funding. The banking and finance segment experienced a decrease in the
       interest earned on advances. The Group injected new capital of NAD 80 million during the reporting
       period to build capacity in this segment.



   -   The resources segment achieved operational readiness at the Meya Mine in Sierra Leone during the
       reporting period, and its first revenue was recorded for the 5 months of operations. This includes the
       sale of the 476.89 carat Meya Prosperity Diamond, the 30th largest diamond in history discovered
       on the eve of 10 November 2017, and subsequently sold for USD 16.5 million in cash.


Further details will be provided in the Group results, for the year ended 31 March 2018, which will be
released on or about 29 June 2018.
The financial information on which this trading statement is based has not been reviewed or reported on by
the Group’s auditors.


Windhoek, Namibia
27 June 2018


Amanda Bruyns
Company Secretary: Trustco Group Holdings Limited


JSE Sponsor: Sasfin Capital (A member of the Sasfin group)
NSX Sponsor: Simonis Storm Securities (Pty) Ltd

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