DENEB INVESTMENTS LIMITED
Registration number: 2013/091290/06
(Incorporated in the Republic of South Africa)
JSE share code: DNB ISIN: ZAE000197398
(“Deneb” or the “Company”)
In terms of para 3.4(b) of the JSE Listings Requirements, listed companies are required to
publish a trading statement as soon as the board of directors is satisfied that a reasonable
degree of certainty exists that the financial results for the period to be reported on next will vary
by 20% or more when compared to those of the prior reporting period.
Shareholders are advised that the Group’s results contain a prior year adjustment and that
comparative balances accordingly differ to those previously reported. In addition, the financial
results have been retrospectively adjusted for discontinued operations.
The prior year adjustment relates to a change in the accounting treatment of Government
- During the prior periods, the grants were deemed to be earned through compliance with
their conditions and meeting the envisaged obligations. Where the qualifying conditions
gave rise to future envisaged obligations, the benefits were allocated against the historic
costs of complying with the conditions as well as the future related obligations. Where no
envisaged obligations were identified, the grants were recognized in other income when
there was reasonable assurance that the entity will comply with all the conditions
attached to the grants and that the grants will be received.
- During the current financial year, the Group’s new auditors believe that the relevant
statement should be interpreted differently and that the above accounting treatment was
incorrect. It is their view that if the benefit derived from the grant is used to acquire a
depreciable asset, the benefit should be matched against the depreciation expense
related to those assets, with the balance being reflected as deferred income in the
statement of financial position.
Accordingly, the results for the comparative period ending 31 March 2017 have been restated
Previously reported Restated
Basic earnings per share 15 cents 10 cents
Continuous operations 15 cents
Discontinued operations (5) cents
Headline earnings per share 10 cents 5 cents
Continuous operations 10 cents
Discontinued operations (5) cents
Deneb shareholders are advised that the results for the year ended 31 March 2018 are
expected to be within the following range:
Restated 31 March 2018 expected
31 March 2017 range
Basic earnings per share (EPS) 10 cents 0 cents to 2 cents
Continuous operations 15 cents 19 cents to 22 cents
Discontinued operations (5) cents (19) cents to (20) cents
Headline earnings per share (HEPS) 5 cents (2) cents to (4) cents
Continuous operations 10 cents 13 cents to 16 cents
Discontinued operations (5) cents (15) cents to (20) cents
The financial results have been impacted by the following material items:
- Discontinued operations
In September 2017 we communicated to stakeholders our intention to restructure the
office automation business and Winelands Textiles. In all material aspects, these
restructures have been completed. Costs of R83 million relating to these businesses
have been debited to the statement of profit and loss.
- Deferred taxation
The Group recognized R87m of deferred tax credits in the statement of profit and loss
for certain businesses where performances have improved to the extent that we now
expect them to record taxable profits for the foreseeable future.
Further details will be included in our results announcement scheduled for release on SENS by
end of May 2018.
The financial information on which this trading statement have been based has not been
reviewed or reported on by the Group’s external auditors.
21 May 2018
Date: 21/05/2018 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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