ADVTECH LIMITED - Trading statement for year ended 31 December 2021

Trading statement for year ended 31 December 2021

ADvTECH Limited
(Incorporated in the Republic of South Africa)
(Registration number 1990/001119/06)
Share code: ADH ISIN: ZAE000031035
(“ADvTECH” or “the group”)


TRADING STATEMENT FOR YEAR ENDED 31 DECEMBER 2021
In terms of the Listings Requirements of the JSE Limited, an issuer is required to publish a trading
statement as soon as it becomes reasonably certain that the financial results for the next reporting period
will show a 20% or more difference from that of the previous corresponding period.

The group reports normalised earnings per share ("NEPS") as a way of excluding the effect of one-off
transactions and corporate action costs from its results.

NEPS for the year ended 31 December 2021 is expected to be between 32% and 37% higher than the
comparative reporting period for the year ended 31 December 2021 ("the comparative period") or
between 119.1 and 123.6 cents per share as compared to 90.2 cents per share (restated from 89.8 cents
per share) in the comparative period.

Headline earnings per share is expected to be between 30% and 35% higher than the comparative period
or between 119.1 and 123.7 cents per share as compared to 91.6 cents per share (restated from 91.2
cents per share) in the comparative period.

Earnings per share ("EPS") for the year ended 31 December 2021 is expected to be between 41% and 46%
higher than the comparative period or between 120.6 and 124.8 cents per share as compared to 85.5
cents per share (restated from 85.1 cents per share) for the comparative period.

Shares held within the group for the management share incentive scheme were not classified as treasury
shares in the comparative period. In terms of IFRS, the restrictions and vesting conditions applicable to
these shares require them to be classified as treasury shares. This resulted in a change to the prior year
weighted average number of shares used for the purpose of calculating earnings per share. There were
no changes to the earnings for the comparative period.

Based on the previously published NEPS of 89.8 cents per share for the comparative period, ADvTECH
expects an increase of between 32% and 37% in NEPS. Based on the previously published HEPS of 91.2
cents per share for the comparative period, an increase of between 30% and 35% is expected. Based on
the previously published EPS of 85.1 cents per share for the comparative period, ADvTECH expects an
increase of between 41% and 46% in EPS.

The group continues to benefit from strategic initiatives implemented to improve overall performance,
including:

    •    restructuring and rationalisation;
    •    efficiency improvement activities;
    •    delivery of quality offerings to clearly defined, relevant market segments; and
         providing superior support and delivery methods.

The group is happy to report that the performance during the year ended 31 December 2021 has delivered
an increase in operating profit across all three divisions. The education divisions (schools and tertiary)
have benefited from good enrolment growth and cost controls, together with improved collections of
trade receivables. Our schools in rest of Africa as well as resourcing in South Africa, which were severely
impacted by the economic effects of the COVID-19 pandemic in the corresponding prior period, have also
returned to profitability.

Resourcing in the rest of Africa continued to deliver a strong performance.

In addition, net financing costs have decreased due to the reduction in net borrowings together with the
benefit of lower interest rates.

The financial information on which this trading update is based has not been reviewed or audited by the
group’s external auditors.

ADvTECH expects to release results for the year ended 31 December 2021 on the JSE’s Stock Exchange
News Service on or about Monday, 28 March 2022.

15 March 2022
Johannesburg
Sponsor: Bridge Capital Advisors Proprietary Limited

Date: 15-03-2022 09:40:00
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