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LEWIS GROUP LIMITED - Trading update for the third quarter and nine months ended December 2015

Release Date: 25/01/2016 07:05
Code(s): LEW     PDF:  
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Trading update for the third quarter and nine months ended December 2015

Lewis Group Limited
Incorporated in the Republic of South Africa
Registration number: 2004/009817/06
JSE share code: LEW
ISIN: ZAE000058236
LEW01 ISIN: ZAG000110222
(“the group”)


TRADING UPDATE FOR THE THIRD QUARTER AND NINE MONTHS ENDED DECEMBER
2015


Trading conditions for the nine month period ended 31 December 2015 remained extremely
challenging, with weak consumer demand, constrained employment, the drought in the
agricultural sector and difficulties in the mining sector affecting sales.


Trading has been significantly impacted by the implementation of the National Credit
Regulator’s affordability assessment regulations requiring customers to present their three
latest pay advices or bank statements as part of the credit application process. This has
proved challenging for consumers in the group’s lower to middle income target market and
impacted the performance for the third quarter ended December 2015, with revenue
increasing by 1.1% and merchandise sales being in line with the prior year.


Revenue for the nine month period grew by 5.4% and merchandise sales by 4.7%.


The debt collection performance remains stable. Debtor costs for the nine months to end
December 2015 increased by 16.5% on the corresponding period, in line with the increase
reported at the half year to September 2015.


Following the announcement of the acquisition of 62 Beares and Ellerines stores outside of
South Africa in November 2015, the 10 stores in Lesotho were seamlessly incorporated into
the group during December. Applications have been filed with the competition authorities in
Namibia, Botswana and Swaziland, and the group awaits competition approval.


The financial information in this trading update has not been reviewed or reported on by the
group’s independent auditor.


Cape Town
25 January 2016

Sponsor:
UBS South Africa (Pty) Ltd

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