LEWIS GROUP LIMITED - Trading update for the third quarter and nine months ended December 2016

Trading update for the third quarter and nine months ended December 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
(“the group”)


TRADING UPDATE FOR THE THIRD QUARTER AND NINE MONTHS ENDED
DECEMBER 2016


Trading conditions for the nine month period ended 31 December 2016 remained
extremely challenging with low economic growth, declining consumer confidence,
constrained employment and the continuing impact of the drought in the agricultural
sector affecting sales mainly in rural areas.


Credit sales continued to be significantly impacted by the affordability assessment
regulations which remain a major hurdle in the group’s lower to middle income target
market.


Revenue for the third quarter to December 2016 declined by 7.5% with merchandise
sales 5.6% lower than the corresponding period. Revenue for the nine month period
reduced by 4.0% and merchandise sales by 2.0%.


The collection performance of the debtors book remains stable. Debtor costs for the
nine months to December 2016 increased by 6.0% on the corresponding period,
reflecting an improvement on the 7.3% increase reported at the half year to
September 2016.


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


Cape Town
25 January 2017
Sponsor
UBS South Africa (Pty) Ltd

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