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LABAT AFRICA LIMITED - Trading Stat for 6 months ended 29Feb2020, Impact of COVID-19 on recent results & w/drawal of 5yr profit projections

Release Date: 24/04/2020 17:00
Code(s): LAB     PDF:  
 
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Trading Stat for 6 months ended 29Feb2020, Impact of COVID-19 on recent results & w/drawal of 5yr profit projections

LABAT AFRICA LIMITED                           
Incorporated in the Republic of South Africa                               
(Registration number 1986/001616/06)
JSE code: LAB ISIN: ZAE000018354
(“Labat” or “the Company”)

TRADING STATEMENT FOR THE SIX MONTHS ENDED 29 FEBRUARY 2020, IMPACT OF
COVID-19 ON RECENT RESULTS AND WITHDRAWAL OF 5 YEAR PROFIT PROJECTIONS

In terms of paragraph 3.4(b)(i) of the Listings Requirements of the Johannesburg Stock Exchange,
listed companies are required to publish a trading statement as soon as they become reasonably
certain that the financial results for the next period to be reported on will be more than 20% different
to those of the previous corresponding period or from a profit forecast previously provided to the
market in relation to such period.

Given the tough trading conditions and repositioning of the Company as announced in September
2019, despite revenue decreasing by 35% to R219 million from R312 million when compared with the
prior comparative period, the Board reports that total comprehensive income for the period
increased by 180% to R2.8 million from a loss of (R3.5 million) compared to the prior period, albeit
primarily due to recognition of other income on a once off basis.

The earnings per share will increase by 182% from a prior period loss of (1.21) cents per share to 0.70
cents per share for the current six months ended 29 February 2020 due to the improved results
outlined above. The headline loss per share will increase by 73.7% from a headline loss of (1.75) for
the previous corresponding period to (3.04) for the six months ended 29 February 2020.

The financial information, on which this trading statement is based, has not been reviewed or
reported on by the Company’s auditors. The unaudited results for the six months ended 29 February
2020 are expected to be published on or about 27 April 2020.

Shareholders are also advised that although the healthcare and technology businesses performed
reasonably well from March 2020 to date, the COVID-19 pandemic and the subsequent 5-week
lockdown has severely impacted on the volumes in the Fuel business. Management is currently
assessing the impact on the business and the various options available, to mitigate the risk in respect
of obligations toward third parties in the Fuel business.

As a result, thereof, the Company has withdrawn the 5 year profit projections for the year ending 31
August 2020 and the 4 years thereafter, and will be issuing a new forecast for the two years ending
31 August 2021 and 31 August 2022, commencing from 1 September 2020, primarily due to the
group’s entry into the cannabis and hemp industry. A further announcement will be made in due
course, including details of an intended capital raise.

JOHANNESBURG
24 April 2020

ARBOR CAPITAL SPONSORS

Date: 24-04-2020 05:00:00
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