TOTAL CLIENT SERVICES LIMITED - Quarterly Progress Report

Quarterly Progress Report

TOTAL CLIENT SERVICES LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/025018/06)
Share code: TCS    ISIN: ZAE000116208
(“TCS” or “the Company”)


QUARTERLY PROGRESS REPORT


Shareholders are referred to the withdrawal of cautionary announcement released on SENS on 9 June
2016 and, in terms of paragraph 1.10(c) of the JSE Listings Requirements relating to the continuing
obligations of suspended companies, are provided with a quarterly progress report on the current state of
affairs of the Company.

The completion and release of all outstanding financial statements remain an important area of focus for
the Company. Prior expected completion deadlines, as referred to in previous progress reports, have not
been met by TCS. The Company is engaged in a financial re-structuring process and elements of this
process is of importance to the auditors, their technical reviews and their ultimate approval of past and
future financial statements. Only once the financial re-structuring elements are approved and in place, the
auditors will be in a position to continue. The conclusion of this process, which was initially expected by
January 2016, has been delayed due to certain unresolved elements of the due diligence process.
Although all efforts are being applied to have this resolved, successful conclusion is only expected
towards the end of August 2016. This has an impact on the completion date previously communicated and
the revised timetable is set out below.

Once the 2014 financial statements are signed and released, work can commence on the audit for 2015
and 2016. Depending on the start date, the audit process could be completed by end of September 2016
and the financial statements released in October 2016.

Following the pro forma announcement in respect of the specific issue of shares as part of the Business
Rescue being released on SENS on 9 June 2016, the effects of the roll out of the Business Rescue Plan
were completed (the last being the release of the pro forma financial effects of the Specific Issue on
SENS). The remaining overdue financial matters and statements includes the 2014 annual report, the
August 2014 interim results, the February 2015 year-end results and the 2015 annual report, the August
2015 interim results and the February 2016 year-end results. All these reports are delayed by the
completion of the outstanding 2014 financial statements. Once this can be completed, the outstanding
2015 and 2016 financial matters can be actioned and completed at the earliest possible opportunity.
Considering the delay and the prerequisite activities, the board of directors of TCS is still positive that
completion and full compliance can be in place by end of October 2016.

Operational update
The operational focus is currently on improving performance and increasing volume production on the four
major full-service contracts in Polokwane, Thlokwe, Buffalo City and Matlosana. The Company completed
the upgrade and enhancement of its Traffic Management Software which will be made available to all
current clients and the general market.

The project with the Namibian Police was successfully completed and all equipment is delivered and
installed. The Company aims to build on the success of this project and its relationship with local partners
in Namibia to secure further business.

The Company continues with the introduction and marketing campaign of the new camera equipment and
technology, as well as the new management systems, to the market in general and is positive that it will be
well supported.

Centurion
30 June 2016

Designated Adviser
Merchantec Capital

Date: 30/06/2016 12:04:00 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.