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PSV HOLDINGS LIMITED - Short Form Announcement - Unaudited Condensed Consolidated Interim Results for the Six Months Ended 2019

Release Date: 29/11/2019 17:12
Code(s): PSV     PDF:  
Wrap Text
Short Form Announcement - Unaudited Condensed Consolidated Interim Results for the Six Months Ended 2019

PSV HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/004365/06)
Share code: PSV    ISIN: ZAE000078705
(“PSV” or “the Company” or “the Group”)


SHORT FORM ANNOUNCEMENT - UNAUDITED CONDENSED CONSOLIDATED INTERIM
RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2019

Financial Position as at:
                                                31 August 2019       31 August 2018    28 February 2019
                                     Change        (Unaudited)          (Unaudited)           (Audited)
                                                         R'000                R'000               R'000
Total assets                       - 11.10%            105 591              118 784             103 104
Cash and cash equivalents           -82.73%              1 810               10 480               6 863
Capital and reserves                -19.09%             19 310               23 868              27 056
Total liabilities                    -0.34%             95 239               94 916              76 048


Financial Performance for the period: 
                                                     Unaudited            Unaudited             Audited
                                                6 months ended       6 months ended     12 months ended
                                                31 August 2019       31 August 2018    28 February 2019
                                                         R'000                R'000               R'000
Revenue                              29.76%             84 379              120 130             237 533
Gross profit                        -27.42%             10 942               15 075              28 216
(Loss)/Profit before tax           -266.74%             -5 127               -1 398              -5 105

Earnings per share:
Basic/(loss) earnings per share        -52%        -1.90 cents           -1.25 cents        -7.71 cents
Headline earnings per share            -52%        -1.90 cents           -1.25 cents        -7.65 cents

Commentary

The interim period has been a period of restructuring and positioning the Group for growth going forward.
This time has seen the Group consolidate its operations, raise debt funding and appoint a new board of
Directors. The new empowered shareholding of DNG Energy Proprietary Limited (“DNG Energy”) has
given the Group a foundation from which it can become the leading and only empowered player in the
Cryogenic Gas industry in South Africa.

DNG Energy has acquired 25% of the Group, resulting in PSV being more than 34% black owned. DNG
Energy has acquired this shareholding in PSV as a vertical integration strategy to participate in the
manufacture of cryogenic LNG ISO containers for their LNG business.

DNG Energy intends to build up a fleet of LNG ISO containers as part of DNG Energy’s short-term
strategy. These will be sourced and built by African Cryogenics (“AC”), providing AC with production
demand and increasing the productivity of the manufacturing facility.


Prospects

There will be a consolidation period under new management and bedding down the capital injection,
building up the order book, but subsequent to DNG Energy’s investment in PSV the Board is optimistic
that the Group will grow into a leader in the South African gas industry.

DNG Energy’s investment in PSV is a first step in the PSV empowerment strategy. PSV is executing its
B-BBEE strategy with the goal of being a level 4 in three years with DNG’s initial investment allowing the
Group to becoming one of the most renowned gas suppliers in South Africa.


Dividend policy

No dividends were declared or proposed (H1 2018: Nil). The Board reviews the dividend policy annually.


Directors: Aldworth Mbalati – Executive Chairman, Abilio da Silva – Executive Director, Basil
Mashabane – lead independent director)#*, Mr Boy Manqoba Ngubo –#*, Olivier Bernard #,
Ms Yvonne Thato Moerane#*
 (# Non-executive / * Independent)

Johannesburg
29 November 2019

Designated Adviser
Merchantec Capital

This short-form announcement is the responsibility of the directors. This announcement is only a
summary of the information in the full announcement and does not contain full or complete details. The
full announcement can be accessed at:
https://senspdf.jse.co.za/documents/2019/jse/isse/psv/interims19.pdf and can be found on the
Company’s website at www.psvholdings.co.za. Copies of the full announcement may also be
requested at the Company’s registered office or the office of the sponsor, Merchantec Capital, at no
charge, during office hours. Any investment decision should be based on the full announcement
released on SENS and published on the Company’s website.

Date: 29-11-2019 05:12:00
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