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BALWIN PROPERTIES LIMITED - Trading Statement

Release Date: 21/09/2016 11:10
Code(s): BWN     PDF:  
Wrap Text
Trading Statement

BALWIN PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2003/028851/06)
Share code: BWN
ISIN: ZAE000209532
("Balwin" or "the Company")



TRADING STATEMENT


Shareholders are advised that headline earnings per share (“HEPS”) and earnings per share (“EPS”)
for the 6 months ended 31 August 2016 are expected to be below the prior year comparative figures
within the ranges outlined in the table below:

Measure                  Decrease relative to       Anticipated cents per           Cents per share in
                         comparative period         share                           comparative period

                         31 Aug 2015                31 Aug 2016                     31 Aug 2015
HEPS                     (33%) – (38%)              36 – 39                         58
EPS                      (33%) – (38%)              36 – 39                         58

The decrease is as a result of:

-     a 21% - 28% reduction in profit after taxation, driven primarily as a result of delays in the registration
      of transfer of 277 units that had been sold at 31 August 2016 but for which transfer had not been
      registered at the deeds office (unit purchasers have paid guarantees in full, have already moved
      in to the units sold and are paying occupational rent in anticipation of the registration of transfer
      thereof). Balwin anticipates that these transfers will be registered during the second half of the
      financial year and will form part of revenue for the financial year ended 28 February 2017. As per
      Balwin’s revenue recognition policy, the Company only recognises revenue on the registration of
      transfer in the deeds office and not on sale; and

-     due to Balwin’s weighted average number of ordinary shares in issue increasing from 400,000,000
      during the period ended 31 August 2015, to 469,662,237 during the period ended 31 August 2016.
      This increase is as a result of the issue of additional ordinary shares on the listing of Balwin on 15
      October 2015.

Steve Brookes, CEO of Balwin commented: “We successfully launched several new developments
in close succession and the lower profit achieved during the period is purely a timing issue
linked to the fact that first phases of new developments typically take longer to register than
subsequent phases with the deed’s office. The backlog of registrations, which impacted this
period’s results, is being processed and going forward, new development launches will be more
staggered to reduce such impact.

“We are confident that this revenue will be realised for the full financial year and although
operating and economic conditions have been challenging, demand has been robust with pre-
sales at our recently launched developments progressing well.”

The financial results on which this trading announcement is based have not been reviewed or reported
on by Balwin`s external auditors.

Balwin`s results for the six months ended 31 August 2016 are scheduled to be published on or about
15 November 2016.

Bedfordview
21 September 2016

Corporate Advisor and Sponsor: Investec Bank Limited

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