AYO TECHNOLOGY SOLUTIONS LIMITED - Further Trading Statement

Further Trading Statement

AYO TECHNOLOGY SOLUTIONS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1996/014461/06
JSE share code: AYO
ISIN: ZAE000252441
(“AYO Technology” or “the Group” or “the Company”)



FURTHER TRADING STATEMENT


In accordance with paragraph 3.4(b) of the JSE Limited (“JSE”) Listing Requirements, a listed company
is required to publish a trading statement as soon as they are reasonably certain that the financial
results for the financial period to be reported on next will differ by at least 20% from those of the prior
comparative period or from the profit forecast previously provided to the market in relation to such
period.

Further to the initial trading statement released on SENS on 10 September 2018, shareholders are
hereby advised that the Group expects to report net profit attributable to owners of the parent for
the year ending 31 August 2018, of between R142 million and R162 million, compared to a net profit
attributable to owners of the parent of R16.7 million for the year ending 31 August 2017, as per the
pre-listing statement issued on 13 December 2017 (“PLS”). The net profit for the financial ended 31
August 2017 included R2.8 million profit attributable to discontinued operations, whereas no earnings
from discontinued operations are expected for the current year.

The Group expects to report basic earnings per share (“EPS”) for the year ending 31 August 2018 of
between 46.45 and 52.99 cents per share compared to the EPS of 7.86 cents per share reported on
for the year ended 31 August 2017, and a decrease of between 80.86% and 78.16% as compared to
the EPS forecast for the financial year ending 31 August 2018 of 242.68 cents per share, as per the PLS
(“2018 Forecast”).

The Group also expects to report headline earnings per share (“HEPS”) for the year ending 31 August
2018 of between 47.57 and 54.12 cents per share, compared to HEPS of 5.66 cents per share reported
on for the year ended 31 August 2017, and a decrease of between 80.40% and 77.70% as compared
to the HEPS forecast of 242.68 cents per share, in terms of the 2018 Forecast.

The decrease in EPS and HEPS compared to the 2018 Forecast is mainly attributable to:

-         A contract with a multi-national company was scheduled to commence earlier in the reporting
          period which was delayed and only commenced in the latter part of the financial year. The
          contract has gone well since commencement;

-         preparation work for the implementation of the above contract whereby the Company
          incurred certain once-off costs;

-         acquisitions which were not concluded within the expected timelines and the Company
          continues to evaluate various value creating transactions; and

-         the delay in an acquisition which was subsequently announced on SENS on 11 September
          2018, which has revenues in excess of R1 billion, strong cash generation with cash from
          operations of R75 million and EBITDA of R70 million.


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

AYO Technology is in the process of finalising its financial results for the year ending 31 August 2018,
which is scheduled to be released on or about 8 November 2018.


Cape Town
6 November 2018

Sponsor
PSG Capital

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