TRUSTCO GROUP HOLDINGS LIMITED - Trading Statement for the Financial Year ended 31 March 2019

Trading Statement for the Financial Year ended 31 March 2019

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

TRADING STATEMENT FOR THE FINANCIAL YEAR ENDED 31 MARCH 2019


Trustco shareholders (“Shareholders”) are advised that the Group is finalising its audited annual
financial statements (“AFS”) for the year ended 31 March 2019.


The Group expects to report the following for the year ended 31 March 2019:


   •   Group consolidated revenue increased by between 67% and 85%, being revenue of between
       NAD 1.340 billion and NAD 1.480 billion, compared to the financial year ended 31 March 2018
       (“prior year”). The prior year’s revenue was NAD 0.801 billion;


   •   Group consolidated profit after tax increased by between 164% and 178%, being profit of
       between NAD 723 million and NAD 762 million, compared to the financial year ended 31
       March 2018 (“prior year”). The prior year’s profit was NAD 274 million;


   •   Headline earnings per share increased between 157% and 176%, being headline earnings per
       share of between 70 cents and 75 cents compared to the prior year. The prior year’s headline
       earnings per share was 27.19 cents;


   •   Basic earnings per share increased by between 199% and 216%, being basic earnings per share
       of between 71 cents and 75 cents compared to the prior year. The prior year’s basic earnings
       per share was 23.74 cents;
    •   Group consolidated cash on hand increased 151% to NAD 173 million compared to the prior
        year; and


    •   At the reporting date the US Dollar to Namibian Dollar exchange rate was 14.20.


The individual segment results, which do not eliminate intercompany revenues or profits, for the 2019
financial period were as follows:


    • The INSURANCE AND ITS INVESTMENTS SEGMENT achieved an increase in revenue and
        profitability during the reporting period. On an individual segmental basis, revenue increased
        to between NAD 1.22 billion and NAD 1.3 billion which represents growth of between 205%
        and 225% from NAD 0.4 billion in the prior year, while profit after tax increased to between
        NAD 670 million and NAD 740 million which represents growth of between 81% and 100%
        compared to NAD 370 million in the prior year. The segment contributed between 16 to 26
        cents per share to Group EPS and Group HEPS. The contributions came from the reassessment
        of the underlying insurance investments, restructuring marginal business lines and cost-saving
        measures. Cash collection from the core insurance and underlying insurance investments has
        remained consistent and in line with expectations, despite the adverse regional economic
        environment.


    •   The BANKING AND FINANCE SEGMENT continued its upward trajectory, which resulted in
        profit after tax ranging between NAD 260 million and NAD 268 million for the reporting period
        on an individual segmental basis, compared to NAD 41 million loss in the prior year
        representing growth of between 734% and 754%. The initial adoption of IFRS 9 amounted to
        a provision of between NAD 238 and NAD 264 million that was accounted for through equity,
        with an additional provision of between NAD 39 million and NAD 43 million for the subsequent
        evaluation of the IFRS 9 calculation for the reporting period. Mortgage loan advances showed
        positive growth of between 56% and 66% from NAD 15 million in the prior year. The
        operational costs of the banking segment decreased by between 10% and 20% year-on-year
        as the segment introduced cost-saving initiatives. The segment continued to build momentum
        to enhance the spectrum of its online capabilities.
   •   The RESOURCES SEGMENT profit after tax increased between 420% and 439%, which
       translates to between NAD 468 million and NAD 485 million for the reporting period,
       compared to NAD 90 million in the prior year. The performance of the segment contributed
       between 51 and 65 cents to Group EPS, with a contribution of between 42 and 52 cents to
       Group HEPS. During the reporting period the resources segment successfully concluded the
       Huso transaction, which was perfected on 31 August 2018 after a 15 year mining licence was
       issued by the Ministry of Mines and Energy of Namibia to Northern Namibia Development
       Company (Pty) Ltd. Meya Mining submitted an application for a Large Scale Mining Licence in
       Sierra Leone, on 20 May 2019.



Further details will be provided in the provisional Group results, for the year ended 31 March 2019,
which will be released on or about 11 June 2019.


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


Windhoek, Namibia
6 June 2019


Amanda Bruyns
Company Secretary: Trustco Group Holdings Limited



JSE Sponsor
Vunani Corporate Finance
NSX Sponsor
Simonis Storm Securities Proprietary Limited

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