TRUSTCO GROUP HOLDINGS LIMITED - Trading Statement for the Interim Period Ended 30 September 2018

Trading Statement for the Interim Period Ended 30 September 2018

TRUSTCO GROUP HOLDINGS LIMITED
Incorporated in the Republic of Namibia
(Registration number 2003/058)
Registered as an external company in South Africa
(External registration number 2009/002634/10)
NSX share code: TUC
JSE share code: TTO
ISIN Number: NA000A0RF067
(“Trustco” or “the Company”)


TRADING STATEMENT FOR THE INTERIM PERIOD ENDED 30 SEPTEMBER 2018


In compliance with paragraph 3.4 of the JSE Limited Listing Requirements, Trustco shareholders
(“Shareholders”) are advised that the Group is presently finalising its interim annual financial statements for
the six-month period ended 30 September 2018 (“Interim Period”).


The Group expects to report:

    •   Basic earnings per share (“EPS”) for the Interim Period of between 13.52 cents and 14.94 cents per
        share, being an increase of between 90.15% and 110.13% respectively compared to the previous 6-
        month interim period ended 30 September 2017 (“Prior Year”) EPS of 7.11 cents per share; and

    •   Headline earnings per share (“HEPS”) for the Interim Period of between 9.70 cents and 11.12 cents
        per share, being an increase of between 36.43% and 56.40% respectively compared to the Prior Year
        HEPS of 7.11 cents per share.

    •   Cash on hand increased by over 100% to more than NAD 210 million.

The salient features during this reporting period were:


Resources (Namibia & Sierra Leone):

    The Huso acquisition was perfected during the period under review with the issue of a 15-year mining
    license to Northern Namibia Diamond Company (Pty) Ltd (“NNDC”) situated in the North-Western frontier
    of Namibia. Next Investments (Pty) Ltd (the investment vehicle of the Van Rooyen Family) subsequently
    provided a loan forgiveness to Huso Investments (Pty) Ltd (“Huso”) of more than NAD 200 million after
    the acquisition date which increased EPS and HEPS. The upgrade of the diamond processing plant is a
    focus of the Group for the next reporting period.

    During the period under review, the focus of the Group was to continuously invest in the exploration
    programme in Sierra Leone in order to complete the resource report in advance of applying for a 25-year
    mining license. During February 2018, Sierra Leone experienced a seamless and democratic transition of
    government, which is proceeding apace.

    The announced capital raising exercise is earmarked to benefit this segment by increasing fleet and mining
    capacity in both mining assets and the Namibian polishing factory, in order to establish and maintain
    steady-state production post mining license.

Insurance and its investments (Namibia & South Africa):

    In the insurance business a marginal increase in insurance premiums was recorded. Sales prices in the
    property segment that Trustco operates in remained intact during the period under review, with a steady
    increase in property transfers to buyers experienced. The group has NAD 400 million (market value) of
    fully-serviced properties available for sale, while the cash collected during the period enabled the unit to
    significantly reduce its leverage on the total property portfolio to NAD 69 million.


Banking and finance (Namibia):

    Trustco Bank continued with its drive towards system readiness, and the first tests of the internet banking
    system have been concluded successfully. The debtors book in this segment has maintained a healthy <5%
    of non-performing loans despite the current economic conditions in Namibia. IFRS 9 was adopted and
    implemented during the period under review with a transition date of 1 April 2018.

Further details will be provided in the Group results, for the Interim Period, which will be released on or about
17 December 2018.


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

Windhoek, Namibia
13 December 2018


Amanda Bruyns

Company Secretary: Trustco Group Holdings Limited

JSE Sponsor

Vunani Corporate Finance

NSX Sponsor

Simonis Storm Securities Proprietary Limited

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