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Trading Statement
VLE – Value Group Limited
Value Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1997/002203/06
Share code: VLE
ISIN code: ZAE000016507
(“Value” or “the Group”)
TRADING STATEMENT
In terms of the Listings Requirements of the JSE Limited, a listed company is required to
publish a trading statement as soon as it becomes reasonably certain that the financial
results for the period to be reported on next will show a 20% or more difference from the
previous corresponding period.
The stagnant economy, which continues to be underpinned by poor growth rates, has
proven to be very challenging with consumer demand, pricing and volume pressures
affecting the wholesale and certain logistics divisions of the Group. Volume decline was
however partially mitigated by management's strategic objectives of growing the customer
base organically in addition to cross selling of services whilst improving operational
efficiencies. These initiatives contributed positively to the Group’s results.
The Group adopted IFRS16 effective 1 March 2019 whereby a right of use asset and an
associated liability is raised for its operating leases. The nature of these expenses relates
to a depreciation charge on the right of use assets and an interest expense on the lease
liabilities. Previously, the Group recognised operating lease expenses on a straight-line
basis over the term of the leases. The Group applied the full retrospective approach in its
adoption of IFRS16 which requires the restatement of comparative financial information.
Accordingly, the Group benefitted from a reduced interest cost in comparison to the
previous restated period due to a reduction of the capital outstanding on lease liabilities.
The Group also benefitted from a reduction in the effective tax rate due to the comparative
period's inclusion of a tax under provision pertaining to a prior period and the receipt, in the
current period, of a tax refund in respect of an allowance for energy efficiency savings.
As a result of the cumulative effect of the above, shareholders are advised that headline
earnings and basic earnings per share for the year ended 29 February 2020 will be 20% to
30% higher than that achieved in the restated corresponding period. This translates to
headline earnings per share ranging from 90,7 to 98,3 cents per share in relation to the
restated comparative period (75,6 cents per share) and basic earnings per share ranging
from 87,8 to 95,2 cents per share in relation to the restated comparative period (73,2 cents
per share). The previously published basic earnings per share was 86.8 cents per share
and headline earnings per share of 89.2 cents per share.
The financial results, on which this trading update has been based, have not been
reviewed nor reported on by Value's auditors. The results for the year ended 29 February
2020 will be published on or about 12 June 2020.
Johannesburg
25 May 2020
Sponsor:
Investec Bank Limited
Date: 25-05-2020 04:27:00
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