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ARGENT INDUSTRIAL LIMITED - Abridged Audited Consolidated Results for the year ended 31 March 2019 and Notice of Annual General Meeting

Release Date: 27/06/2019 15:58
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Abridged Audited Consolidated Results for the year ended 31 March 2019 and Notice of Annual General Meeting

Argent Industrial Limited
Registration number 1993/002054/06
(Incorporated in the Republic of South Africa)
Share code: ART     ISIN code: ZAE000019188
(‘Argent’ or ‘the group’ or ‘the company’)

ABRIDGED AUDITED CONSOLIDATED RESULTS FOR THE YEAR ENDED 31 MARCH 2019
AND NOTICE OF ANNUAL GENERAL MEETING

Financial Highlights

Headline earnings per share        104.4 cents
Gearing                            1.6%
Net asset value per share          1 305.4 cents

The abridged audited financial statements are presented on a consolidated
basis.

Consolidated Statement of Profit or Loss              Audited      Audited
for the year ended 31 March 2019                       2019         2018
                                                        R 000       R 000
Revenue                                               1 721 578   1 828 407
Cost of sales                                        (1 299 966) (1 439 593)
Gross profit                                            421 612     388 814
Net operating expenses                                 (301 920)   (580 883)
Operating profit / (loss) before finance costs          119 692    (192 069)
Net interest expense                                     (4 498)    (11 178)
Profit / (loss) before taxation                         115 194    (203 247)
Taxation                                                (29 730)     20 657
Profit / (loss) for the year                             85 464    (182 590)
Attributable to owners of the
 - Parent                                               83 763     (184 192)
 - Non-controlling interest                              1 701        1 602
                                                        85 464     (182 590)

Basic earnings / (loss) per share (cents)                101.2       (205.3)
Diluted earnings / (loss) per share (cents)              101.2       (205.3)
Headline earnings per share (cents)                      104.4         76.8
Diluted headline earnings per share (cents)              104.4         76.8
Dividends per share (cents)                               10.0         21.0

Supplementary information
Shares in issue (000)
- at end of period excluding treasury shares            77   686     84   005
- weighted average                                      82   741     89   784
- diluted weighted average                              82   741     89   784
Depreciation and amortisation (R 000)                   24   940     25   066

Calculation of headline earnings (R 000)
Earnings / (loss) attributable to ordinary
                                                         83 763    (184 192)
shareholders
Adjusted for:
(Profit) / loss on disposal of property, plant and
                                                         (1 757)     69 602
equipment
Impairment of property, plant and equipment                3 889     72 674
Impairment of intangible assets                                -    130 395
Total tax effects of adjustments                             492   (19 489)

Headline earnings attributable to ordinary
                                                          86 387     68 990
shareholders

Consolidated Statement of other Comprehensive          Audited      Audited
Income or Loss for the year ended 31 March 2019         2019         2018
                                                        R 000        R 000
Profit / (loss) for the period                          85 464      (182 590)

Other comprehensive income for the period
Items that may be reclassified subsequently to
profit and loss
Exchange differences on translating foreign
                                                         9 493        (4 630)
operations
Items that will not be reclassified subsequently to
profit and loss
Revaluation of land and buildings                            -       (39 903)
Tax effect of above transactions                             -         11 648
Total other comprehensive income / (loss) for the
                                                        94 957      (215 475)
period
Attributable to owners of the
 - Parent                                               93 256      (217 077)
 - Non-controlling interest                              1 701         1 602
                                                        94 957      (215 475)

Consolidated Statement of Financial Position           Audited      Audited
as at 31 March 2019                                     2019         2018
                                                        R 000        R 000
ASSETS
Property, plant and equipment                           450 736       417 589
Intangible assets                                         3 798         2 513
Goodwill (1)                                            150 144        80 322
Long-term receivables                                    17 785        29 123
Deferred taxation                                         4 683         9 532
Non-current assets                                      627 146       539 079

Inventories                                             381 473       374 130
Trade and other receivables                             314 814       312 652
Current portion of long-term receivables                  6 128         5 611
Taxation                                                      -            14
Bank balance and cash                                    73 679        87 918
Current assets                                          776 094       780 325
Non-current assets held for sale                         10 500        23 288
TOTAL ASSETS                                          1 413 740     1 342 692

EQUITY AND LIABILITIES
Capital and reserves
Stated capital and treasury shares                      392 809       421 789
Reserves                                                  7 666        (1 839)
Retained earnings                                       613 664       541 795
Attributable to owners of the parent                  1 014 139       961 745
Non-controlling interest                                 18 483        16 782
Total shareholders' funds                             1 032 622       978 527
Interest-bearing borrowings                               4 708        12 322
Long-term loans                                           2 621         1 659
Other liabilities                                        29 832             -
Deferred tax                                             51 883        43 364
Non-current liabilities                                  89 044        57 345

Trade and other payables                                 216 195      194 606
Taxation                                                   9 840            -
Bank overdraft                                            53 802       81 063
Current portion of interest-bearing borrowings            12 237       31 151
Current liabilities                                      292 074      306 820

TOTAL EQUITY AND LIABILITIES                           1 413 740    1 342 692

Net asset value per share (cents)                        1 305.4      1 144.9

1. The group acquired the entire issued share capital of Fuel Proof Limited
("Fuel Proof") and Roll-Tec Safety Limited ("Roll-Tec") for a cash purchase
consideration of GBP4.8 million on 28 June 2018.

The purchase consideration consists of:
- a cash purchase consideration of GBP4.8 million;
- a deferred purchase consideration of GBP200 000 payable in twenty-four
  months after the effective date; and
- a contingent purchase consideration to be recalculated twenty-four months
  after the effective date in that it will either reduce to a minimum of
  GBP4.08 million or increase to a maximum of GBP6.4 million.

An additional consideration is payable only if the average profits of Fuel
Proof and Roll-Tec exceed a target level agreed by both parties. The
contingent consideration recognised is GBP1.4 million based on the fair
value of the probable cash outflow. It reflects management’s estimate of a
100% probability that the targets will be achieved. The deferred and
contingent considerations were discounted using a rate of 0.75%.

Fuel Proof has an excellent reputation as leaders of fuel storage and supply
systems that are designed to provide improved security, service life,
reliability and ease of use. Roll-Tec is a specialist manufacturer of roll-
over protection bars for construction machinery as well as being rental
agent for Fuel Proof, renting out its product into the European market.

The acquisition was to grow the group’s portfolio of companies and to expand
internationally into the United Kingdom.

The fair value of assets and liabilities assumed were as follows:

                                        Fuel Proof      Roll-Tec       Total
                                          R 000          R 000         R 000

Property, plant and equipment               24   929      10 622        35   551
Inventory                                   24   199           -        24   199
Trade and other receivables                  7   617         364         7   981
Bank balance and cash                       10   965         101        11   066
Trade and other payables                   (6   685)    (13 696)      (20   381)
Taxation liability                         (3   252)       (533)       (3   785)
Deferred taxation liability                (2   178)     (2 094)       (4   272)
Interest-bearing borrowings                       -      (1 860)         (1 860)
Goodwill / other intangible assets           54 591       15 231          69 822
Total purchase price and acquisition
costs                                        110 186       8 135         118 321
Deduct bank balance on acquisition           (10 965)       (101)       (11 066)
Cash flow on acquisition net of cash
acquired                                     99 221        8 034         107 255

                                                                        R 000
Fair value of consideration transferred
Amount settled in cash                                                  88 598
Fair value of deferred consideration                                     3 620
Fair value of contingent consideration                                  26 103
Total fair value of consideration transferred                          118 321

Goodwill on acquisition                                                 69 822

The goodwill arising on acquisition is attributable to the
anticipated profitability of these businesses.

Revenue since acquisition date included in consolidated
results for period                                                     118 284
Profit after tax (excluding foreign exchange adjustment) since
acquisition date included in consolidated results for period            12 257
Group revenue had the business combination been included for
the entire period                                                    1 770 416
Group profit after tax (excluding foreign exchange adjustment)
had the business combination been included for the entire
period                                                                  91 877

Abridged Consolidated Statement of Cash Flows for       Audited       Audited
the year ended 31 March 2019                             2019          2018
                                                         R 000         R 000

CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations                            164 387        199 649
Net interest expense                                      (4 498)       (11 178)
Dividends paid                                            (8 471)       (18 588)
Normal taxation paid                                     (13 338)       (11 818)
Net cash inflow from operating activities                138 080         158 065

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment                (43 744)       (77 541)
Additions to intangible assets                              (768)          (100)
Proceeds on disposal of property, plant and
equipment                                                 38   062       59 446
Acquisition of subsidiaries net of cash acquired        (77   423)           -
Long-term receivables advanced / (repaid)                  5   666      (14 152)
Net cash outflow from investing activities               (78   207)     (32 347)

CASH FLOWS FROM FINANCING ACTIVITIES
Share buy-back                                            (28 980)      (26 083)
Proceeds from long-term loans                                  962         1 659
Proceeds from interest-bearing borrowings                    4 878         8 270
Repayment of interest-bearing borrowings                  (33 758)      (33 769)
Net cash outflow from financing activities                (56 898)      (49 923)
Net increase in cash and cash equivalents                    2 975        75 795
Cash and cash equivalents at beginning of year               6 855      (68 129)
Exchange differences on cash and cash equivalents           10 047         (811)
Cash and cash equivalents at end of year                    19 877         6 855

Consolidated Statement of Changes in      Stated         Treasury      Employee
Equity for the year ended                 capital         shares          share
31 March 2019                                                         incentive
                                                                        reserve
                                           R 000           R 000         R 000
Balance at 31 March 2017                   540 918         (93 046)       1 301
Share-based payments                             -               -          521
Share buy-back                            (26 083)               -            -
Transfer of reserve to retained
earnings                                         -               -      (1 382)
Total comprehensive loss                         -               -            -
Dividends – current interim and prior
final                                            -               -            -
Less dividend on treasury shares                 -               -            -
Balance at 31 March 2018                   514 835         (93 046)         440
Adjustment from the adoption of
IFRS 9                                           -               -            -
Adjusted balances at 1 April 2018          514 835         (93 046)         440
Share-based payments                             -               -          301
Share buy-back                             (28 980)              -            -
Transfer of reserve to retained
earnings                                         -               -        (289)
Total comprehensive income                       -               -            -
Dividends – current interim and prior
final                                            -               -            -
Less dividend on treasury shares                 -               -            -
Balance at 31 March 2019                   485 855         (93 046)         452

Consolidated Statement of Changes in    Revaluation       Foreign      Retained
Equity for the year ended                 reserve        currency      earnings
31 March 2019 (continued)                               translation
                                                          reserve
                                           R 000           R 000         R 000
Balance at 31 March 2017                    36 323        (13 447)      750 923
Share-based payments                             -              -             -
Share buy-back                                   -              -             -
Transfer of reserve to retained
earnings                                         -          7 730        (6 348)
Total comprehensive loss                  (28 255)         (4 630)     (184 192)
Dividends – current interim and prior
final                                            -              -       (19 375)
Less dividend on treasury shares                 -              -           787
Balance at 31 March 2018                     8 068        (10 347)      541 795
Share-based payments                             -              -             -
Adjustment from the adoption of
IFRS 9                                           -               -       (3 712)
Adjusted balances at 1 April 2018            8 068         (10 347)      538 083
Share buy-back                                   -               -             -
Transfer of reserve to retained
earnings                                         -               -           289
Total comprehensive income                       -            9 493       83 763
Dividends – current interim and prior
final                                            -                -      (8 846)
Less dividend on treasury shares                 -                -          375
Balance at 31 March 2019                         8 068        (854)      613 664



Consolidated Statement of Changes    Total              Non-               Total
in Equity for the year ended      attributable       controlling       shareholders’
31 March 2019 (continued)         to owners of        interest             funds
                                   the parent
                                         R 000             R 000              R 000
Balance at 31 March 2017                1 222 972           15 180            1 238 152
Share-based payments                          521                -                  521
Share buy-back                           (26 083)                -             (26 083)
Transfer of reserve to retained
earnings                                        -                -                    -
Total comprehensive loss                 (217 077)           1 602            (215 475)
Dividends – current interim and
prior final                               (19 375)               -             (19 375)
Less dividend on treasury shares               787               -                  787
Balance at 31 March 2018                   961 745           16 782             978 527
Adjustment from the adoption of
IFRS 9                                     (3 712)                -             (3 712)
Adjusted balances at 1 April 2018          958 033           16 782             974 815
Share-based payments                           301                -                 301
Share buy-back                            (28 980)                -            (28 980)
Transfer of reserve to retained
earnings                                         -                -                   -
Total comprehensive income                  93 256            1 701              94 957
Dividends – current interim and
prior final                                (8 846)                -              (8 846)
Less dividend on treasury shares               375                -                  375
Balance at 31 March 2019                 1 014 139           18 483            1 032 622

The initial application of IFRS 9 has led to an adjustment of R3.7 million.


Segmental review         Manufacturing      Steel         Properties       Consolidated
                                           trading

                             R 000          R 000           R 000             R 000

Business segments
for the year ended
31 March 2019
Revenue from external
sales                       1 199 290       518 403          3 885           1 721 578
Inter-segment sales            67 119       125 375         26 336
Total revenue               1 266 409       643 778         30 221

Profit before taxation         86 691        18 551          9 952             115 194
Taxation                                                                      (29 730)
Profit for the year                                                             85 464
Other information
  Segment assets              931 038     257 104   225 598      1 413 740
  Segment liabilities         239 091      45 259    96 768        381 118
  Capital expenditure           9 149      16 629    18 733         44 511
  Depreciation /
  amortisation                 22 519       2 388        33         24 940
  Net interest expense*        (4 923)     (1 739)   11 160          4 498

* As per the group policy, finance costs and finance income derived from
primary banking is netted off. The company has net finance income and this
is distorting the segment for finance costs.

Segmental review          Manufacturing     Steel      Properties     Consolidated
(continued)                                trading

                              R 000         R 000         R 000          R 000

for the year ended
31 March 2018
Revenue from external
sales                        1 251 892      575 816           699       1 828 407
Inter-segment sales            111 742      150 641        29 546
Total revenue                1 363 634      726 457        30 245


Loss before taxation          (148 311)     (40 795)      (14 141)       (203 247)
Taxation                                                                   20 657
Loss for the year                                                        (182 590)

Other information
Loss before taxation
per above                     (148 311)     (40 795)      (14 141)       (203 247)
Impairment of
intangible assets              127 842        2 553             -         130 395
Impairment of property,
plant and equipment             68 049       48 630        27 687         144 366
Profit before taxation
and impairments                 47 580       10 388        13 546          71 514

Segment assets                803 205     296 401    243 086     1 342 692
Segment liabilities           226 460      38 659     99 046       364 165
Capital expenditure            50 174       3 057     24 410        77 641
Depreciation /
amortisation                   20 462       4 571         33        25 066
Net interest expense*          (4 462)      3 225     12 415        11 178

* As per the group policy, finance costs and finance income derived from
primary banking is netted off. The company has net finance income and this
is distorting the segment for finance costs.

Segmental review                      South Africa     Rest of the Consolidated
(continued)                                               world
                                          R 000           R 000           R 000
Geographical segments
for the year ended 31 March 2019
Revenue from external sales               1 413 517       308 061        1 721 578
Profit before taxation                       67 002        48 192          115 194
Taxation                                                                  (29 730)
Profit for the year                                                         85 464

Segment assets                            1 173 166       240 574        1 413 740
Segment liabilities                         315 846        65 272          381 118
Capital expenditure                          37 448         7 063           44 511
Depreciation / amortisation                  18 200         6 740           24 940
Net interest expense *                        4 782         (284)            4 498

for the year ended 31 March 2018
Revenue from external sales                1 647 685      180 722        1 828 407
(Loss) / profit before taxation             (230 507)      27 260        (203 247)
Taxation                                                                    20 657
Loss for the year                                                        (182 590)

Segment assets                             1 210 034      132 658        1 342 692
Segment liabilities                          350 567       13 598          364 165
Capital expenditure                           72 460        5 181           77 641
Depreciation / amortisation                   23 005        2 061           25 066
Net interest expense *                        11 366        (188)           11 178


Fair value measurement of financial instruments

Assets and liabilities measured at fair value in the statement of financial
position are grouped into three levels of a fair value hierarchy.

The three levels are defined based on the observability of significant
inputs to the measurement, as follows:

-   Level 1: quoted prices (unadjusted) in active markets for identical
    assets or liabilities;
-   Level 2: inputs other than quoted prices included within Level 1 that are
    observable for the asset or liability, either directly or indirectly; and
-   Level 3: unobservable inputs for the asset or liability.

The following table sets out the group's assets and liabilities that are
measured and recognised at fair value:

31 March 2019                   Level 1          Level 2        Level 3     Total


                                 R 000            R 000         R 000       R 000
Recurring fair value
measurements

Financial assets:
BEE minority shareholder
loan                                      -               -       12 316     12 316
Forward exchange contracts                -             520            -        520
Total recurring financial
assets                                    -             520       12 316     12 836

Non-financial assets:
Land and building                         -               -      279 053    279 053
Total non-recurring
financial assets                          -               -      279 053    279 053
Non-recurring fair value
measurements

Land and buildings held for
sale                                     -               -       10 500       10 500
Total non-recurring
financial assets                         -               -       10 500       10 500

Recurring fair value
measurements

Financial liabilities:
Contingent consideration                 -               -       29 832       29 832
Total recurring financial
liabilities                              -               -       29 832       29 832

31 March 2018                  Level 1       Level 2       Level 3       Total


                                R 000        R 000         R 000         R 000
Recurring fair value
measurements

Financial liabilities:
Forward exchange contracts               -        346             -          346
Total recurring financial
liabilities                              -        346             -          346

Non-financial assets:
Land and building                        -          -       279 367      279 367
Total non-recurring
financial assets                         -          -       279 367      279 367

Non-recurring fair value
measurements

Land and buildings held for
sale                                     -          -       23 288        23 288
Total non-recurring
financial assets                         -          -       23 288        23 288

The group has measured land and buildings at fair value on a non-recurring
basis as a result of the reclassification of land and buildings as held for
sale.

There have been no transfers between Level 1 and Level 2 recurring fair
value measurements during 2018 and 2019.

The group's policy is to recognise transfers into and out of the different
fair value hierarchy levels at the date the event or change in circumstances
that caused the transfer occurred.

Measurement of fair value of financial and non-financial instruments

The group’s finance team performs valuations of financial items for
financial reporting purposes, including Level 3 fair values, in consultation
with third party valuation specialists for complex valuations. Valuation
techniques are selected based on the characteristics of each instrument,
with the overall objective of maximising the use of market-based
information. The finance team reports directly to the financial director
(FD) and to the audit and risk committee. Valuation processes and fair value
changes are discussed among the audit and risk committee and the valuation
team at least every year, in line with the group’s reporting dates. The
valuation techniques used for instruments categorised in Level 2 are
described below.

Foreign currency forward contracts (Level 2)

The group’s foreign currency forward contracts are not traded in active
markets. These have been fair valued using observable forward exchange rates
and interest rates corresponding to the maturity of the contract. The
effects of non-observable inputs are not significant for foreign currency
forward contracts.

BEE minority shareholder loan (Level 3)

The fair value of the loan was based on unobservable inputs. The fair value
has been calculated with reference to the underlying net asset value in the
company where the shares are held.

The reconciliation of the carrying amounts of financial assets classified
within Level 3 is as follows:

BEE minority shareholder loan                                    R 000
Balance at 1 April 2018                                             17 051
Adjustment from the adoption of IFRS 9                             (5 155)

Recognised in profit or loss
Interest income                                                          420

Balance at 31 March 2019                                              12 316


Contingent consideration (Level 3)

The fair value of the contingent consideration related to the acquisition of
Fuel Proof Limited and Roll-Tec Safety Limited based on unobservable inputs.
The fair value of the contingent consideration is based on the fair value of
probable cash outflow. This reflects management’s estimate of a 100%
probability that targets will be achieved. The deferred and contingent
considerations were discounted using a rate of 0.75%.

The reconciliation of the carrying amounts of financial liabilities
classified within Level 3 is as follows:

Contingent consideration                                         R 000
Balance at 1 April 2018                                                   -
New business combination                                              29 832

Balance at 31 March 2019                                              29 832


Land and buildings (Level 3)
The group's land and buildings is estimated based on appraisals performed by
the directors. The valuation processes and fair value changes are reviewed
by the board of directors and audit and risk committee at each reporting
date.

The fair values of the land and buildings is estimated using an income
approach which capitalises the estimated rental income stream, net of
projected operating costs, using a discount rate derived from market yields
and take into account the type of property and the property's location.

The most significant inputs, all of which are unobservable, are the
estimated rental value assumptions about vacancy levels and the discount
rate. The estimated fair value increases if the estimated rental increases,
vacancy levels decline or if discount rates (market yields) decline.
Management considers the range of reasonably possible alternative
assumptions is greatest for rental values and vacancy levels and that there
is also an interrelationship between these inputs. The assumed discount
rates applied for the future income streams range between 9.5% and 10.7%
(2018 - 9.2% and 11.6%).

The reconciliation of the carrying amounts of non-financial assets
classified within Level 3 is as follows:

Land and buildings                                               R 000
Balance at 1 April 2018                                           279 367
New business combinations                                           1 207
Additions                                                          19 260
Disposals                                                          (8 008)
Reclassification to non-current assets held for sale              (10 500)

Recognised in other comprehensive income
Exchange difference on translation of foreign operation             2 087

Recognised in profit or loss
Impairments                                                        (3 889)
Depreciation                                                         (471)

Balance at 31 March 2019                                           279 053

Financial overview

Argent Industrial is a South African group with both, local and
international manufacturing and commodity trading interests. The group has
interests in South Africa, the United Kingdom and the United States of
America.

Results

The group achieved its objectives for the year by successfully investing in
stable, developed international markets and in itself, via the repurchase of
its own shares.

Argent will continue to disinvest out of its South African companies where
it believes that the funds would be better invested offshore, buy back its
own shares and/or return the excess funds to its shareholders.
The consolidated results produced an operating profit before financing costs
of R119.7 million and a subsequent profit after taxation of R85.4 million,
resulting in headline earnings per share of 104.4 cents.

The number of shares in issue excluding treasury shares is 77.6 million,
reduced from the previous year of 84 million shares.

During the course of this financial year, the group sold Parlance
Investments and its property for an amount of R10.6 million, Cedar Paint
property for R24 million and has entered into an agreement to sell its
Xpanda Security Johannesburg property for R10.5 million, the transfer of
which is expected to go through in the 2020 financial year.

The group acquired Fuel Proof Limited and Roll-Tec Safety Limited on 28 June
2018 for an amount of GBP4.8 million. Performance targets are expected to
increase this amount to GBP6.4 million, with the balance of the purchase
price being payable on 1 July 2020.

Argent repurchased and cancelled 6.3 million shares at a cost of R28.9
million during this period of review.

The group is in the process of looking at various offers received regarding
the disposal of its property portfolio. Given that they would all have to be
rented back, we are also exploring the option of refinancing them in a
separate entity, which then could, in part be disposed of.

Prospects

Argent Industrial Limited will continue with its current strategy as set out
above and expects its foreign operations to exceed the South African
earnings by September 2020.

The group is in discussions with various parties regarding the disposal of
certain South African subsidiaries, as well as expanding certain of its
subsidiaries internationally.

Dividend

No dividends were declared by the Board of Directors for the year ended 31
March 2019. Excess funds will be utilised for the share buy-back programme.

Basis of preparation

The abridged audited consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS), the
presentation and disclosure requirements of IAS 34 - Interim Financial
Reporting, the SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee, the Financial Reporting Pronouncements as issued by the
Financial Reporting Standards Council and in compliance with the Companies
Act of South Africa (No. 71 of 2008) and the Listing Requirements of the JSE
Limited. The results have been prepared on the historical cost basis except
for the revaluation of land and buildings and certain financial instruments,
which are carried at either fair value or amortised cost, as appropriate.
The accounting policies are consistent with those of the previous annual
financial statements, except for the adoption of IFRS 9 and IFRS 15, to the
extent that they are applicable. The abridged audited consolidated financial
statements have been prepared under the supervision of the Financial
Director, Ms SJ Cox CA (SA).
Events after the reporting period

No material facts or circumstances have occurred between the accounting date
and the date of this report.

Going concern

Shareholders are advised that the audited results for the year ended 31
March 2019 have been prepared on the going concern concept. This basis
presumes that funds will be available to finance future operations and that
the realisation of assets and settlement of liabilities, contingent
obligations and commitments will occur in the ordinary course of business.

Abridged Audited Financial Statements and Notice of Annual General Meeting

The abridged audited consolidated financial statements for the financial
year ended 31 March 2019, is expected to be posted to shareholders on or
about the 28 June 2019 (the Abridged Audited Financial Statements). The
annual report will be available on the company’s website, www.argent.co.za
on 28 June 2019.

Notice is hereby given that Argent’s Annual General Meeting (AGM) of
shareholders will be held in the company’s boardroom at First floor, Ridge
63, 8 Sinembe Crescent, La Lucia Ridge Office Estate, Umhlanga, on Tuesday,
20 August 2019 at 10:00 to transact the business as stated in the notice of
AGM circulated together with the abridged audited financial statements. The
date on which shareholders must be recorded as such in the share register to
be eligible to vote at the AGM is Thursday, 8 August 2019, with the last day
to trade being Monday,5 August 2019.

Audit opinion

The auditors, SNG Grant Thornton (EY Lakhi as designated auditor), have
audited the group`s financial statements for the year ended
31 March 2019 and their unqualified audit report is available for inspection
at the company`s registered office.

These abridged results are extracted from audited information but are not in
itself audited. The directors therefore take full responsibility for the
preparation of the abridged results and that the financial information has
been correctly extracted from the underlying financial statements.

The auditor’s report does not necessarily cover all of the information
contained in this announcement. Shareholders are therefore advised that in
order to obtain a full understanding of the nature of the auditor’s work
they should obtain a copy of that report together with the accompanying
financial information from the registered office of the company.

Changes to the board

During the reporting period changes to the board of directors were:
- Mr. Khathutshelo Mapasa was appointed as independent non-executive
director on 10 April 2019.


On behalf of the board
TR Hendry CA(SA)          Umhlanga Rocks
Chief Executive Officer   27 June 2019

Registered Office:        First floor
                          Ridge 63
                          8 Sinembe Crescent
                          La Lucia Ridge Office Estate
                          4019
                          Tel: +27 (0) 31 791 0061

Auditors:                 SNG Grant Thornton (EY Lakhi as designated
                          auditor)

Sponsors:                 PSG Capital
                          Second floor, Building 3
                          11 Alice Lane
                          Sandhurst
                          Sandton
                          2196

Transfer Secretaries:     Link Market Services South Africa
                          Proprietary Limited
                          13th floor
                          Rennie House
                          19 Ameshoff Street
                          Johannesburg
                          2001

Company Secretary:        Jaco Dauth

Directors: CD Angus(Independent Non-executive),PA Christofides
(Independent Non-executive), Ms SJ Cox (Financial Director), TR Hendry
(Chief Executive Officer), AF Litschka, K Mapasa (Independent Non-
executive), T Scharrighuisen (Non-executive Chairman).

Date: 27/06/2019 03:58:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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