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Trading Update
Value Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1997/002203/06
Share code: VLE
ISIN code: ZAE000016507
(Value or the company)
TRADING UPDATE
In terms of the listings requirements of the JSE Limited, a listed company is required to
publish a trading update as soon as it becomes reasonably certain that the financial results
for the period to be reported on next will show a 20% or more difference from the previous
corresponding period.
Trading conditions in the logistics environment continue to be extremely challenging. Poor
growth rates have driven down volumes which have translated to non-profitable rates being
offered by certain competitors. A restructuring exercise within the Logistics and Freightpak
breakbulk operations was undertaken with the objective to reduce overheads and cut direct
operating costs. In addition, rates have been carefully evaluated and adjusted where
required. The effect of this restructuring has gained traction across other operations within
the Group which has resulted in the achievement of a reduced cost base towards the end of
the interim period. This ongoing restructuring exercise has translated to a positive
improvement in certain segments within the Group. The acquisition of Key Distributors
effective 1 March 2016 has contributed positively to results. Although margins are low, the
business has outperformed expectations and continues to undergo rapid expansion into
new markets.
Shareholders are accordingly advised that basic and headline earnings per share for the
interim period ended 31 August 2016 will be 25% to 40% higher than that achieved in the
previous corresponding interim period. This translates to basic earnings per share ranging
from 12,6 to 14,1 cents per share in relation to the comparative period (10,1 cents per
share) and headline earnings per share ranging from 13,8 to 15,4 cents per share in relation
to the comparative period (11,0 cents per share).
The financial results, on which this trading update has been based, have not been reviewed
nor reported on by Value’s auditors. Further information will be provided in the results
announcement for the 6 months ended 31 August 2016 which will be published on or about
19 October 2016.
Johannesburg
11 October 2016
Sponsor:
Investec Bank Limited
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