PHUMELELA GAMING & LEISURE LIMITED - Unaudited condensed consolidated interim financial results for the six months ended 31 January 2020

Unaudited condensed consolidated interim financial results for the six months ended 31 January 2020

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

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE 
SIX MONTHS ENDED 31 JANUARY 2020 AND FURTHER CAUTIONARY ANNOUNCEMENT.

OPERATIONAL FEATURES FOR THE PERIOD       
-   Horse racing requires a national reorganisation as the current funding model 
    is no longer functioning in the best long-term interests of the industry  
-   Betting turnovers remain under pressure in South Africa 
-   International operations performed satisfactorily 

FINANCIAL FEATURES FOR THE PERIOD   
-   Equity accounted profits R91,4 million (profits of R88,6 million)  
-   International profits of R113,1 million (profit of R113,5 million) 
-   Local operations lost a combined R115,1 million (loss of R61,4 million)
-   Headline loss per share of 0,89 cents (headline earnings per share of 
    68,02 cents)
-   Attributable profit per share of 0,08 cents (attributable profit of 70,05 cents 
    per share)
-   No interim dividend declared  
-   Net debt to equity ratio, including right of use asset, 38% (stable like for 
    like)  

GOING CONCERN
Shareholders are referred to the long form SENS announcement in this regard.

PROSPECTS             
As at the date of this results announcement the prospects for horse-racing, other 
sports events and betting are uncertain and the Board is in no position to provide 
reliable guidance. The Group is operating under onerous conditions, much of which 
is beyond its influence. Phumelela seeks further negotiations with the broader 
horse racing community to find a resolution to the dire situation in horse racing 
and agree commercially sustainable solutions. The Group remains engaged in 
discussions aimed at raising capital. Should these discussions not prove 
conclusive soon, the Board will have to decide on whether there is any reasonable 
prospect that the Group's business can be rescued, or whether to make application 
for voluntary liquidation. The Board's current view is that even if financial 
relief can be obtained, a relief package should be negotiated as part of a 
business rescue plan. The Board will make an announcement in this regard in the 
near future.

Shareholders are reminded that Phumelela is under cautionary and are advised to 
continue to exercise caution when dealing in the Company's securities.

Any forward-looking statements or forecasts contained in these results have not 
been reviewed or reported on by the Group auditors. 

DIVIDEND TO SHAREHOLDERS           
No interim dividend is declared.

SHORT FORM ANNOUNCEMENT     
This short-form announcement is the responsibility of the directors of the Company.
It contains only a summary of the information in the full announcement ("full 
announcement") and does not contain full or complete details. The full announcement 
can be found at: https://senspdf.jse.co.za/documents/2020/jse/isse/phm/H1F2020.pdf

A copy of the full announcement is also available for viewing on the Company's 
website at www.phumelela.co.za/investor-relations/annual-results or may be 
requested in person, at the Company's registered office or the office of the 
sponsor, at no charge, during office hours.

Any investment decisions by investors and/or shareholders should be based on 
consideration of the full announcement.

By order of the Board

M Tembe                     JA Stuart
Chairman                    Group Chief Executive 
4 May 2020 

Directors:              M Tembe (Chairman), J A Stuart* (Group Chief Executive),
                        K C Khampepe, SA Mahlalela, N J Mboweni (Mrs), 
                        S H Muller, Dr E Nkosi, J B Walters 
                        (*Executive)
Company Secretary:      F. Moloi (Mrs)
Sponsor:                Investec Bank Limited
Registered Office:      Turffontein Racecourse, 14 Turf Club Street, Turffontein
Transfer Secretaries:   Computershare Investor Services (Pty) Ltd
Share code:             PHM
ISIN:                   ZAE000039269
Sponsor:                Investec Bank Limited
Web site:               www.phumelela.com
 


Date: 04-05-2020 07:05:00
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