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Trading statement for the financial year ended 31 July 2015
Phumelela Gaming & Leisure Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/016610/06)
Share code: PHM ISIN: ZAE000039269
(“Phumelela” or “the Company”)
Trading statement for the financial year ended 31 July
2015
Phumelela is currently finalising its results for the
financial year ended 31 July 2015.
In terms of the Listings Requirements of the JSE Limited,
companies are required to provide guidance to the market
as soon as they are satisfied that a reasonable degree of
certainty exists that the financial results for the
current reporting period will differ by at least 20% from
the results of the previous corresponding reporting
period.
The directors anticipate that earnings per share (“EPS”)
for the year ended 31 July 2015 will decrease by between
25% and 30%. In cents per share, EPS is expected to
decrease from last year’s 146,1 cents to between 109,6
and 102,3 cents per share.
Furthermore, the directors anticipate that headline
earnings per share (“HEPS”) for the year ended 31 July
2015 is expected to decrease by between 10% and 15%. In
cents per share, HEPS is expected to decrease from last
year’s 132,1 cents to between 118,9 and 112,3 cents per
share.
The decline in EPS is due to the Group impairing the 26%
investment in Betting World Nigeria (“BWN”) and incurring
a mark to market loss on its investment in Automatic
Systems Limited (Mauritius) (“ASL”) as a result of the
share price of ASL declining.
The mark to market loss on ASL is not adjusted for HEPS
calculation purposes and therefore included in HEPS.
As reported on as a subsequent event in the interim
results, the Group’s 26% interest in BWN was incurring
losses and the company approached the controlling
shareholders for additional funding. The controlling
shareholders in BWN were not prepared to provide their
proportionate share of the funding and accordingly BWN
ceased trading on 13 March 2015. Therefore, the group’s
exposure to BWN, comprising investment in and monies owed
by, has been impaired.
As reported on in the first half, legal costs to combat
abuse of intellectual property by certain bookmakers and
related matters continued to be incurred in the second
half and further affected EPS.
Shareholders are also advised that headline earnings and
HEPS from continuing operations on an adjusted basis,
excluding the mark to market loss on ASL and the
abnormally high legal costs, is expected to increase by
between 5% and 10%. In cents per share, HEPS on an
adjusted basis is expected to increase from last year’s
131,7 cents to between 138,3 and 144,9 cents per share
Phumelela’s financial results for the year ended 31 July
2015 are scheduled to be released on SENS on Friday 2
October 2015.
The financial information on which this trading statement
is based has not been reviewed or reported on by the
Company’s external auditors and represents the best
estimates of management.
Johannesburg
21 September 2015
Sponsor and Investment Bank
Investec Bank Limited
Date: 21/09/2015 10:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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