LEWIS GROUP LIMITED - Trading Update For the Third Quarter and Nine Months Ended December 2017

Trading Update For the Third Quarter and Nine Months Ended December 2017

Lewis Group Limited
Incorporated in the Republic of South Africa
Registration number: 2004/009817/06
JSE share code: LEW
ISIN: ZAE000058236



TRADING UPDATE FOR THE THIRD QUARTER AND NINE MONTHS ENDED
DECEMBER 2017


Lewis Group delivered a satisfactory sales and collections performance in the third
quarter ended 31 December 2017, despite the continued challenging trading and
economic conditions, and ongoing adverse impact of the National Credit Act’s
affordability assessment regulations.

Merchandise sales for the quarter were 9.8% higher than the corresponding period,
resulting in a 7.0% growth for the nine months ended 31 December 2017. Comparable
stores sales grew by 13.3% for the quarter and 9.8% for the nine months.


Revenue increased by 0.7% for the quarter, showing an improvement on the decline of
3.2% recorded for the six months ended September 2017. Revenue for the nine
months declined by 1.7%, mainly as a result of the 9.6% reduction in Other Revenue.
This decline in Other Revenue annuity streams is largely due to lower credit sales in
prior years, compounded by the implementation of the prescribed maximum credit life
insurance rates in August 2017. This trend of declining Other Revenue annuity
streams is expected to continue.


Debtor costs benefited from a stronger collections performance and reduced by 11.2%
for the nine months. This reflects an improving performance on the 6% increase in
debtor costs reported for the financial year ended March 2017.

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


Cape Town
23 January 2018
Sponsor:
UBS South Africa (Pty) Ltd

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