To view the PDF file, sign up for a MySharenet subscription.

PHUMELELA GAMING & LEISURE LIMITED - Trading statement, notice of postponement of release of 2019 annual results and renewal of cautionary announcement

Release Date: 21/10/2019 16:29
Code(s): PHM     PDF:  
 
Wrap Text
Trading statement, notice of postponement of release of 2019 annual results and renewal of cautionary announcement

Phumelela Gaming and Leisure Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1997/016610/06)
Share Code: PHM ISIN: ZAE000039269
(“the Company”)

Trading statement, notice of postponement of release of 2019 annual results and renewal of
cautionary announcement

Trading statement

Further to the voluntary trading update and trading statement released on SENS on 12 July 2019,
shareholders are advised that the Board is now reasonably certain that the Company will make a basic
loss and a headline loss for the year, as follows:

•   a basic loss is expected of between R80 million and R100 million, compared with a basic profit of
    R155.1 million in the prior year;
•   a basic loss per share is expected of between 80 cents and 100 cents, compared with a basic profit
    of 153.78 cents in the prior year;.
•   a headline loss is expected of between R90 million and R100 million, compared with a headline
    profit of R155.6 million in the prior year; and
•   a headline loss per share is expected of between 90 cents and 100 cents, compared with a headline
    profit of 154.23 cents in the prior year, which equates to a decrease of between 158% and 165%.

Included within the basic loss and headline loss are the following material items which collectively
amount to R110 million:

•   R30 million in restructuring costs;
•   R32 million for a franchise provision in the North West province;
•   R26 million in lost income for four months of the financial year due to the withholding of the Gauteng
    betting levy, as referenced in previous SENS announcements;
•   R12 million annual cost due to the increase in VAT to 15% in April 2018, which is an ongoing
    reduction in income as there is no relief on the take-out ratio after provincial taxes and levies; and
•   R10 million cost for the social responsibility development programme.

The estimated financial information contained in this announcement has not been audited, reviewed or
reported upon by the Group’s external auditors.

Notice of postponement of release of annual results for the twelve months ended 31 July 2019

Shareholders are advised that the Company is in the process of finalising results for the 12 months
ended 31 July 2019 which is taking longer than anticipated. As a result, it is now expected that the
audited results will be released on SENS on or before 29 November 2019.

Renewal of cautionary announcement

Further to the SENS announcement dated 12 September 2019, the Company remains under cautionary
as engagements with the Gauteng Member of the Executive Council responsible for Economic
Development, Environment, Agriculture and Rural Development (“the MEC”) and the Gauteng
Gambling Board are still in progress.

Shareholders are advised to continue to exercise caution when dealing in the Company's securities.

Turffontein
21 October 2019

Sponsor: Investec Bank

Date: 21/10/2019 04:29:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Email this JSE Sens Item to a Friend.

Share This Story