ITALTILE LIMITED - Voluntary trading statement for the six months ended 31 December 2013

Voluntary trading statement for the six months ended 31 December 2013

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


VOLUNTARY TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2013

Italtile is currently finalising its results for the six
months ended 31 December 2013.


During the period the Group disposed of the following non-core
businesses:

  -    The eight store CTM retail operation in Australia via a
       facilitated management buyout;

  -    Allmuss Properties Zambia Limited (“Allmuss Properties
       Zambia”)– a property holding company; and

  -    Cladding Finance Proprietary Limited – a niche provider
       of outsourced debtors’ solutions.


Accordingly, the summarised financial information presented
below refers to continuing operations only.

The Group’s basic earnings per share (“EPS”) will be between
18% and 20% higher and the headline earnings per share
(“HEPS”) will be between 15% and 17% higher, compared to the
EPS of 23.9 cents and the HEPS of 24.0 cents for previous
corresponding period. HEPS have been adjusted for the post-
taxation impact of the following once-off events:


  -   Profit of R2.4 million achieved on the sale of a
      property in South Africa; and

  -   Profit of R4.4 million achieved on the sale of Allmuss
      Properties Zambia (referred to above).



Both the EPS and HEPS calculations include a R14 million IFRS2
charge, of which R11 million is a once-off charge, related to
an equity-settled staff share incentive scheme implemented
during the six month period.

Turnover   from  continuing   operations  increased by  31%,
significantly impacted by the conversion and contribution of
nine previously franchised CTM stores to Group-owned stores,
and the opening of one new CTM during the period.
Excluding the contribution from these ten stores, turnover
from comparable Group-owned stores and entities increased by
15%. Average selling prices were inflation-linked.

This sound performance is attributable to a gain in market
share across the Group’s merchandise categories. Whilst
consumers remained highly price-sensitive, particularly in the
lower-middle and middle income segments, the Group’s year-
round value offering and policy of “Right product at the right
time, place and price” found favour amongst homeowners across
the LSM categories 3 to 10.


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 2013
are expected to be published on SENS on 13 February 2014.


Johannesburg
3 February 2014

Sponsor
Merchantec Capital

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