ITALTILE LIMITED - Trading statement

Trading statement

ITALTILE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1955/000558/06)
Share code: ITE   ISIN: ZAE000099123
(“Italtile” or “the Group”)

TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

Italtile is currently finalising    its   results   for   the   six
months ended 31 December 2014.

The Group’s basic earnings per share (“EPS”) from continuing
operations will be between 36.3 cents and 36.9 cents,
reflecting an increase of between 27% and 29% compared to the
previous corresponding period ended 31 December 2013 being
28.6 cents and the headline earnings per share (“HEPS”) from
continuing   operations  will  be   between  35.5   cents   and
36.1 cents, reflecting an increase of between 27% and 29%,
compared   to   the   previous  corresponding   period    ended
31 December 2013 being 28.0 cents. HEPS have been adjusted for
the post-taxation impact of an R11 million profit on sale of
property.

Trading profit growth from continuing operations of between
20% and 22% will translate into profit after tax growth from
total operations of between 35% and 37%, as a result of the
following:

  - Profit   on    sale   of    property   of    R11   million
    (2013: R7 million);
  - A once-off IFRS2 charge related to the Italtile Staff
    Share Scheme of R7 million (2013: R11 million);
  - The increased contribution from associates, Ceramic
    Industries   Ltd    and   Ezeetile,    of    R27   million
    (2013: R13 million);
  - Net finance income of R2 million compared with a net
    finance expense in the prior comparative period of
    R6 million related to the reduction in a long-term loan;
  - Once-off losses related to discontinued operations in the
    prior comparative period of R12 million; and
  - A lower effective tax rate resulting from reduced
    consolidated Dividend Withholding Tax charges compared
    with the prior corresponding period.

System-wide turnover from continuing operations for the
6 months ended 31 December 2014 will be between 18% and 20%
higher than the prior comparative period.

The performance reported for the six months is attributable to
continued focus on the Group’s business optimisation programme
in key areas including IT systems, the supply chain and
in store efficiencies to enhance the customer shopping
experience.

REVIEW OF RESULTS
The information on which this announcement is based has not
been reviewed or reported on by Italtile's auditors.

PUBLICATION OF RESULTS
The Group's results for the six months ended 31 December 2014
are   expected  to   be  published  on   SENS  on   or  about
16 February 2015.


Johannesburg
23 January 2015

Sponsor
Merchantec Capital

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