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LEWIS GROUP LIMITED - Trading Update And Trading Statement For The Six Months Ended September 2016

Release Date: 21/10/2016 09:35
Code(s): LEW LEW01     PDF:  
Wrap Text
Trading Update And Trading Statement For The Six Months Ended September 2016

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

TRADING UPDATE AND TRADING STATEMENT FOR THE SIX MONTHS ENDED SEPTEMBER
2016

The performance for the six months ended September 2016 (“the period”)
reflects the challenging economic and consumer environment in which the
business is trading and how these conditions have impacted the group’s
lower to middle income target customers.

This has been compounded by the ongoing impact of the National Credit
Regulator’s affordability assessment guidelines which are restricting
access to credit in South Africa and severely limiting the group’s credit
sales.

Merchandise sales for the period were in line with last year, with like for
like merchandise sales down 9.2%.     Revenue declined by 2% mainly as a
result of a 4% decline in other Revenue over the corresponding prior
period.

The group’s gross profit margin has continued to expand in line with
management’s expectations and improved to 40.5% compared to 36.4% in the
previous year.

Debtor costs for the period increased by 7.3% reflecting a further slowing
from the 17% growth reported at the 2016 year end.

Shareholders are advised that as a result of the adverse trading
conditions, headline earnings per share for the period is expected to be
between 210 cents per share and 177 cents per share, between 35% and 45%
lower than the 322.6 cents per share for the corresponding prior period .
Earnings per share is expected to be between 218 cents per share and 185
cents per share, between 35% and 45% lower than the 335.5 cents per share
for the corresponding prior period.

The financial information contained in this announcement has not been
audited, reviewed or reported on by the group’s external auditors. The
group’s interim results for the period are scheduled to be released on SENS
on or about 9 November 2016.

Cape Town
21 October 2016
Sponsor:UBS South Africa (Pty) Ltd
Debt Sponsor: Absa Bank Limited (acting through its Corporate and
Investment Bank division)

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