SOUTH OCEAN HOLDINGS LIMITED - Trading Statement

Trading Statement

South Ocean Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2007/002381/06)
Share code: SOH
ISIN: ZAE000092748

TRADING STATEMENT

In terms of the JSE Listings Requirements, companies are required to publish a trading
statement as soon as they are satisfied that a reasonable degree of certainty exists that
the financial results for the period to be reported on will differ by at least 20% from the
financial results for the previous corresponding period or a profit forecast previously
provided to the market in relation to such period.

Shareholders are accordingly advised that a reasonable degree of certainty exists that,
for the year ended 31 December 2017:

-    South Ocean Holdings’ headline loss per share is expected to be between
     34.9 cents (112.8% higher) and 36.9 cents (125.0% higher) compared to the loss per
     share of 16.4 cents for the corresponding prior year; and
-    The loss per share is expected to be between 35.5 cents (42.0% higher) and
     38.0 cents (52.0% higher) compared to the loss per share of 25.0 cents for the
     corresponding prior year.

The loss per share was impacted by the following:

-    a decrease as a result of the reversal of the net impairment charge raised in 2016
     of R13.5 million to the plant and machinery of South Ocean Electric Wire
     Company due to the subsidiary’s value in use being lower than the enterprise
     value in 2016;
-    an increase by the net impairment charge of R8.3 million to the non-current assets
     of Radiant Group due to the subsidiary’s value in use being lower than the
     enterprise value;
-    the Radiant trade name was also impaired by a net value of R4.0 million; and
-    Radiant made an additional net provision for slow moving inventory to the value
     of R12.7 million.

The impairment charge, reversal of impairment and the additional provision were made
in accordance with IFRS.

The financial information on which this trading statement is based has not been
reviewed or reported on by South Ocean Holdings’ external auditors. The audited
results for the 12 months ended 31 December 2017 are expected to be published on or
about 22 March 2018.


By order of the Board
Alrode

16 March 2018
Sponsor
Arbor Capital Sponsors Proprietary Limited

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