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

GPI is currently finalising its financial results for the six months ended 31 December 2020,
which will be published on or about 26 March 2021.

The COVID-19 pandemic had a significant impact on the financial performance of GPI’s group
businesses over the six months ended 31 December 2020. GPI’s gaming and hospitality
assets, in particular, SunWest and Worcester Casino, experienced reduced activity due to the
curfews, the restrictions on the sale of alcohol and slowdown in tourism. Sun Slots was subject
to the same challenging macroeconomic environment but proved more resilient and remains
very well positioned in the alternative gaming market. Overall, the contribution of the gaming
assets to GPI’s headline earnings decreased by 53% compared to the prior period.

GPI’s businesses in the food and quick-service-restaurant sectors were also affected by the
COVID-19 pandemic. Burger King South Africa (BKSA) experienced lower in-store foot traffic;
however, this was offset by significant growth in home delivery. As a result, BKSA achieved a
1.7% growth in comparative sales for the six months ended 31 December 2020. Margins,
however, were lower due to: the sales mix shift towards home delivery, increased food costs
and once-off costs incurred to comply with strict COVID-19 operating procedures.

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.

Accordingly, GPI hereby advises that a reasonable degree of certainty exists that for the six
months ended 31 December 2020 earnings will be as follows:

                                              31 December 2019             31 December 2020
                                                        actual               expected range
                                                       (cents)                      (cents)
 Basic earnings per share                                 1.39             (0.44) to (0.16)
 Headline earnings per share                             10.35              (2.03) to 0.04


Despite the challenging effects of COVID-19, GPI continued its effort to unlock value through
a controlled sale of assets. During the period, the sale of the N1 City property was
completed for R26m and a share purchase agreement was signed to sell BKSA and Grand
Foods Meat Plant for a total enterprise value for R593m. Furthermore, GPI has reduced its
debt during the six months ended 31 December 2020.

The financial information on which this trading statement and trading update is based has not
been reviewed and reported on by GPI’s external auditors.

Cape Town
17 March 2020

Sponsor
PSG Capital

Date: 17-03-2021 04:45:00
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