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EOH HOLDINGS LIMITED - Trading statement

Release Date: 12/04/2019 08:30
Code(s): EOH     PDF:  
Wrap Text
Trading statement

(Incorporated in the Republic of South Africa)
(Registration number 1998/014669/06)
JSE share code: EOH ISIN: ZAE000071072
(the "Group")


In accordance with section 3.4 (b) of the JSE Listings Requirements, shareholders are advised that the financial
results for the Group for the six-month period ended 31 January 2019 (the "H1 2019") will differ by more
than 20% from that of the previous corresponding period as further detailed below:

                                                    For the six months ended       For the six months ended
                                                        31 January 2019                31 January 2018
                                                           (unaudited)                   (as reported)
From continuing operations (in cents)
Earnings per share ("EPS")                                   (2 073)                          320
Headline earnings per share ("HEPS")                           (973)                          314
Including discontinued operations
(in cents)
EPS                                                          (2 099)                           47

HEPS                                                           (993)                          319

Revenue remains stable at R8,428 million and operating costs remain flat, after the removal of once off items.

Normalised EBITDA from continuing operations for H1 2019 is R387 million.

The Group has recently completed a strategic review of the business and presented a strategic plan to the
Board which was adopted in late March 2019. The strategic review necessitated a review of the carrying value
of intangible assets, the identification of business lines no longer core to the adopted strategy and a review of
minority investments. This was mentioned in the CEO 100-day update on 11 December 2018 and the SENS
announcements of 15 February 2019 and 20 March 2019.

The main areas impacting EPS on a once-off basis are:

   -    impairments to goodwill, intangible assets and equity accounted investments of 1,092 cents;
   -    losses on business identified for close out at H1 2019 of 372 cents;
   -    impact of additional specific impairment provisions of trade receivables and other financial assets in
        terms of IFRS 9 of 142 cents;
   -    impact of the Lebashe BEE transaction IFRS 2 costs of 100 cents; and
   -    loss on the disposal of an equity accounted investment in Zimbabwe of 93 cents.

Additionally, a financial statement review at 31 July 2018 took place which has resulted in a restatement of
the full year results for the financial year ended 31 July 2018 which has had the following impact on EPS and

                                                 For the year ended*             For the year ended*
                                              31 July 2018 (as reported)   31 July 2018 (restated unaudited)
From continuing operations (in cents)

EPS                                                        202                           (260)
HEPS                                                       278                             18
Including discontinued operations
(in cents)
EPS                                                        (70)                          (531)
HEPS                                                       283                             23
*impairments were done at year end

The restatements above relate to an impairment booked against the GCT unwind and the TTCS equity
accounted investment in Zimbabwe.

Notwithstanding the above non-cashflow items, the net asset value of the Group is R4,574 million, including
cash of R957 million as at 31 January 2019. The net asset value of the Group remains substantially above the
current market capitalisation of the Group of R1,855 million.

The financial information contained in this trading statement has not been reviewed nor reported on by the
Group's independent external auditors.

Good progress has been made in implementing the new strategy. Shareholders will be given additional
information in respect of the strategic operational review and the future prospects of the Group at the 2019
Interim Results presentation, following the release of the H1 2019 results on 16 April 2019.

12 April 2019

Java Capital

Date: 12/04/2019 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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