GRAND PARADE INVESTMENTS LIMITED - Trading Statement

Trading Statement

GRAND PARADE INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1997/003548/06)
Share code: GPL
ISIN: ZAE000119814
(“GPI” or “the Company”)

TRADING STATEMENT

In terms of the Listings Requirements of the JSE Limited, a
listed company is required to publish a trading statement as soon
as it becomes aware that the financial results for the financial
period to be reported on next will vary by 20% or more from those
of the previous comparable period.

GPI hereby advises that a reasonable degree of certainty exists
that in respect of the six months ended 31 December 2016:

  -   basic earnings per share will be between 6.80 and 7.37
      cents per share, which equates to an increase of between
      20% and 30% when compared to the previous period ended 31
      December 2015; and
  -   headline earnings per share will be between 0.72 and 0.92
      cents per share, which equates to a decrease of between
      55% and 65% when compared to the previous period ended 31
      December 2015.

The increase in basic earnings per share is mostly as a result
of a R48.5 million profit, net of capital gains tax, on the
disposal of 19.9% of GPI Slots (Pty) Ltd, which was concluded
during the period.

The decrease in headline earnings per share can be attributed to
two main factors being (1) GPI’s disposal of 10% of SunWest
International (Pty) Ltd (“Disposal”), which was concluded on 30
June 2016 and has resulted in a reduced contribution of R20.5
million (when compared to 31 December 2015) and (2) the initial
investment of R13.7 million in the launch Dunkin Donuts and
Baskin Robbins.

However, the decrease in headline earnings per share must be
viewed in conjunction with the effect that the Disposal has had
on the balance sheet. During the period GPI received proceeds of
R547.5 million from the Disposal and utilised R281.2 million to
repay debt and reduce its gearing to 16.5% at 31 December 2016.
In addition, R112.0 million of the proceeds were utilised to pay
a 25.0 cents dividend per share on 28 December 2016.

The financial information on which this trading statement is
based has not been reviewed and reported on by GPI’s external
auditors. The financial results for the period ended 31 December
2016 will be published on or about 16 March 2017.

Cape Town
14 March 2017

Sponsor and corporate advisor:
PSG Capital

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