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Release Date: 21/05/2018 14:00
Code(s): DNB     PDF:  
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Trading Statement

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
as follows:

                                          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.

Cape Town
21 May 2018

PSG Capital

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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