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Trading Update
ARB HOLDINGS LIMITED
(Registration number: 1986/002975/06)
Share code: ARH ISIN: ZAE000109435
(“ARB” or “the company”)
TRADING UPDATE
In accordance with paragraph 3.4 of the Listings Requirements
of the JSE Limited, a listed company is required to publish a
trading statement “as soon as it becomes aware, with a reasonable
degree of certainty, that the financial results for the next
period to be reported on are likely to vary by more than 20%
from the previous corresponding period.”
Shareholders are advised that ARB expects its earnings per share
(“EPS”) for the year ended 30 June 2020, to be between 34.46
cents and 40.21 cents which is between 30% and 40% lower than
the EPS reported for the year ended 30 June 2019, of 57.44 cents.
It further expects its headline earnings per share (“HEPS”) for
the year ended 30 June 2020, to be between 55.29 cents and 61.11
cents which is between 5% higher and 5% lower than the HEPS
reported for the year ended 30 June 2019, of 58.20 cents.
The expected decrease in EPS arises primarily from the effects
of the non-cash IFRS impairment of trademarks and goodwill, as
it has been determined that the recoverable amount has been
negatively impacted by management’s forecasts of the pressure
on projected earnings in the economy in the next few years as a
result of the global recession following the impact of the COVID-
19 pandemic. Furthermore, certain property values have also had
to be impaired below cost given the revision in fair market
values since the COVID-19 lockdown. These IFRS adjustments are
excluded in the determination of HEPS.
The valuations of the put option liability issued to the non-
controlling interest in Eurolux and Craigcor have been reduced
by betweenR30m and R35m, compared to the R21.2m reduction in
valuation for the comparative period last year. This alone
represents an increase in EPS and HEPS of between 3.83 cents and
5.87 cents per share. This decrease in the valuation of the put
option liability is primarily as a result of the decrease average
earnings of the subsidiaries and the decrease in the price
earnings ratio applicable in terms of the put option.
Shareholders are again cautioned that the put option liability
calculations are very sensitive to movements in the share price
and may rise as fast as they have decreased.
ARB’s results for the year ended 30 June 2020 are expected to
be released on or about Thursday, 20 August 2020.
The information on which this trading update has been based has
not been reviewed or reported on by the company’s auditors.
Durban
13 August 2020
Sponsor
Grindrod Bank Limited
Date: 13-08-2020 08:00:00
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