LEWIS GROUP LIMITED - Trading statement for the 12 months ended 31 March 2021

Trading statement for the 12 months ended 31 March 2021

Lewis Group Limited
Incorporated in the Republic of South Africa
Registration number: 2004/009817/06
JSE share code: LEW
ISIN: ZAE000058236
Bond code: LEWI
(“Lewis Group” or “the group”)


TRADING STATEMENT FOR THE 12 MONTHS ENDED 31 MARCH 2021
Shareholders are advised that Lewis Group expects headline earnings for the 12
months ended 31 March 2021 (“the period”) to be between 116% and 136% higher than
the R204.5 million reported for the prior corresponding period.

The group posted a strong operational performance for the period despite the first
quarter of the financial year being adversely impacted by the Covid-19 lockdown trading
restrictions. The good merchandise sales momentum reported for the nine months to
December 2020 continued in the fourth quarter to March 2021, driven by robust growth
in cash sales across all the group’s brands.

The health of the debtors’ book continues to improve, with satisfactory paid accounts
increasing for the period and collection rates improving steadily post the lockdown.
Debtors’ costs reduced significantly compared to last year when an additional COVID-
19 debtors’ impairment provision of R189.5 million was raised.

These factors, together with continued tight expense management, have resulted in the
group’s operating profit more than doubling over the prior year.
Earnings for the period are expected to be as follows:

                             12 months
                               ended                      12 months ended
                           31 March 2020                   31 March 2021
                              Reported                    Expected ranges
Earnings per share             232.1c          553 cps – 600 cps     138% to 158% higher

Headline earnings per          260.2c          590 cps – 643 cps     127% to 147% higher
share


The forecast financial information on which this trading statement is based is the
responsibility of the directors and has not been reviewed or reported on by the group’s
independent auditor.
The group’s annual financial results for the year ended 31 March 2021 will be released
on SENS on 27 May 2021.

                                                                                          
Cape Town
12 May 2021

Sponsor
UBS South Africa (Pty) Ltd

Debt sponsor
Absa Bank Limited acting through its Corporate and Investment Banking Division




                                                                                 

Date: 12-05-2021 07:05:00
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