BASIL READ HOLDINGS LIMITED - Trading update

Trading update

Basil Read Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number 1984/007758/06)
Share Code: BSR ISIN: ZAE 000029781
(“Basil Read” or the “company”)

TRADING UPDATE

Shareholders are referred to the trading update released by Basil Read dated
26 November 2014, advising that the company expected earnings per share
and headline earnings per share for the year ending 31 December 2014 to be
a minimum of 20% lower compared to the previously reported corresponding
period.

The company is finalising its results for the year ended 31 December 2014,
and is required to, in terms of paragraph 3.4(b) of the Listings Requirements
of JSE Limited (“JSE”), once reasonable certainty is obtained, to provide the
guidance as set out therein. Consequently shareholders are advised that the
following guidance replaces the minimum percentage difference quoted in the
previous trading update.

Basil Read expects its earnings per share for the year ended 31 December
2014 to be a loss of between 588.00 and 635.00 cents per share or between
349% and 369% lower compared to the 235.97 cents earnings per share for
the previously reported corresponding period. The prior year earnings per
share includes the profit on disposal of TWP in the amount of R183 million.

Shareholders are further advised that Basil Read expects its headline
earnings per share for the year ended 31 December 2014 to be a loss of
between 357.00 and 374.00 cents per share or between 510% and 530%
compared to the 86.99 cents headline earnings per share for the previously
reported corresponding period.

The company’s operating performance for the financial year ended 31
December 2014, has been adversely impacted by losses relating to a number
of contracts in the construction and engineering divisions. In the process of
finalising the company’s results for the year ended 31 December 2014,
additional expected losses relating to these contracts have been raised in
accordance with the provisions of IAS 11 Construction Contracts. The
company has submitted a number of claims related to these contracts, which
are currently being assessed or are in discussion, and although the company
is confident of a positive outcome, the possibility of gains through the claims
process, and/or the possible impact of delay damages have not been
recognised in terms of the prevailing accounting standards.

Included in the overall projected losses, are the following once off
adjustments:
•    a non-recurring non-cash impairment of goodwill for an amount of R304
     million, of which R82 million relates to non-core assets; and
•    a non-recurring write down of development land relating to the
     company’s investment in Rolling Hills Leisure Estate in Mpumalanga for
     an amount of R80.6 million.

Decisive action has been taken by the new management team to reduce
overheads and address non-core assets within the company, with a view to
improving the company's performance for the ensuing year.

The financial information on which this trading statement is based has not
been reviewed or reported on by Basil Read’s auditors.

Date of financial results and presentation:

The company’s annual results for the year ending 31 December 2014 will be
published on the Stock Exchange News Service of the JSE (“SENS”) prior to
opening of market, on Friday, 27 March 2015 and an investor presentation will
be hosted in Johannesburg only at 13:00 (SA time) on the same day. The
company will provide the following investor services on Friday 27 March 2015
at 13:00 (SA time):

    1. Live call access

       Live Call access numbers for participants
       South Africa: 0 800 200 648
       Australia:    1 800 350 100
       UK:           0808 162 4061

    2. Live webcast
       A live webcast will also be available on www.basilread.co.za by clicking
       on the full year results tab on the home screen.

Johannesburg
20 March 2015


JSE Sponsor
Grindrod Bank Limited

Date: 20/03/2015 11:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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