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ECSPONENT LIMITED - Trading statement for the 15 months ended 31 March 2017

Release Date: 24/05/2017 11:15
Code(s): ECS     PDF:  
Wrap Text
Trading statement for the 15 months ended 31 March 2017

ECSPONENT LIMITED
Incorporated in the Republic of South Africa
Registration number: 1998/013215/06
JSE Code: ECS | ISIN: ZAE000179594
("the Company" or "Ecsponent")

TRADING STATEMENT FOR THE 15 MONTHS ENDED 31 MARCH 2017

In terms of paragraph 3.2(b) of the JSE Limited (“JSE”) Listings Requirements, companies are required to publish
a trading statement as soon as they are satisfied, with a reasonable degree of certainty, that the financial results
for the period to be reported upon next will differ by at least 20% from those of the previous corresponding
reporting period.

The Board is pleased to advise shareholders that it is reasonably certain that the year-end results* for the 15-
month period ended 31 March 2017 when compared with the published results for the financial year ended 31
December 2015 (“Comparative Period”), will show an increase of a minimum of 185% in earnings per share
(“EPS”), resulting in a minimum EPS of 7.384 cents, as compared to the EPS of 2.591 cents for the Comparative
Period.

Profitability was notably driven by the successful corporate actions engaged in by the Company, including the
disposal of non-core assets at R141 million at a gain of R74.6 million.

The adjustments required in terms of the Headline Earnings Circular 2/2015 issued by the South African Institute
of Chartered Accountants (“SAICA”) result in a notable disparity between EPS and headline earnings per share
(“HEPS”). The impact is that after-tax profits of R69 million are included in the IFRS guided EPS calculation but are
excluded from the SAICA guided HEPS calculation.

The HEPS is expected to decrease by a maximum of 100%, resulting in a minimum HEPS of 0.001 cents, as
compared to the HEPS of 2.490 cents for the Comparative Period.

The Board believes the Company’s performance is best guided by EPS, as the Company will conclude the balance
of the corporate actions in respect of the Sure Choice disposal and the dilution in Ecsponent Financial Services
Limited Zambia, which will be accounted for in the new financial year. The Board therefore believes for as long as
the Company is in this acquisition phase, the HEPS measure is not meaningful.

The financial information on which this trading statement is based has not been reviewed or reported on by the
Company's auditors.

The financial results for the 15-month period ended 31 March 2017 will be released on or before 30 June 2017.

* Shareholders are referred to the announcement dated 12 December 2016 which contained details of the change
in the Group’s financial year end from 31 December 2016 to 31 March 2017.

24 May 2017
Pretoria

Sponsor to Ecsponent
Questco (Pty) Ltd

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