INDEQUITY GROUP LIMITED - Short Form Announcement For The Six Months Ended 31 March 2020

Short Form Announcement For The Six Months Ended 31 March 2020

Indequity Group Limited
Registration number: 1998/015883/06
Incorporated in the Republic of South Africa
Share code: IDQ
ISIN: ZAE000016606
(“Indequity” or “the Group” or “the Company”)

SHORT FORM ANNOUNCEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2020

HIGHLIGHTS

                                                             Change          31 March 2020          31 March 2019
                                                                                     R’000                  R’000
 Total income                                                -9.37%                 29 496                 32 547
 Profit before taxation                                      -31.6%                  4 340                  6 349

                                                                                      Cents                  Cents
 Capital distribution per share                               -1.6%                   13.78                  14.00
 Basic earnings per share                                    -39.5%                   24.77                  40.94
 Headline earnings per share                                 -39.5%                   24.77                  40.94

COMMENTS ON RESULTS

Indequity's core operations continued to deliver increased earnings during the period. However, a decrease in
investment income in comparison to the previous corresponding period resulted in an overall decrease in the Group's
basic earnings per share ("EPS").

EPS for the period ended 31 March 2020 was 24.77 cents per share, which is a decrease of 39.5% when compared to
the EPS of 40.94 cents for the period ended 31 March 2019.

The decrease in investment income is due to a significant decrease in the market value of US listed equities as a result
of the COVID-19 pandemic, with the Dow Jones Index closing more than 18% lower as at 31 March 2020, than as at 30
September 2019.

The Group's investment in US Dollar based investments continues to serve as a hedge against depreciation in the value
of the Rand. A disciplined underwriting approach again delivered positive results for the Group's core operations.

DISTRIBUTION

The board has considered the challenging economic circumstances that Indequity currently faces during the COVID-19
pandemic and has decided that capital preservation is of utmost importance. Therefore, no capital distribution or
dividend has been declared for the period ended 31 March 2020. The situation will be reassessed at financial year end.

In the prior corresponding period, the board declared a capital distribution out of share premium of 15.72 cents per
Indequity ordinary share and 2.63 cents per Indequity A class preference share for the six months ended 31 March
2019.

SHORT FORM ANNOUNCEMENT

The content of this short form announcement is the responsibility of the directors. Shareholders are advised that this
short form announcement represents a summary of the information contained in the full long form announcement
which is available at https://senspdf.jse.co.za/documents/2020/jse/isse/idq/interim20.pdf and also published on the
Company’s website at http://www.indequity.com/documents. Any investment decisions by investors and/or
shareholders should be based on a consideration of the full announcement as a whole and investors and shareholders
are encouraged to review the full announcement, which is available as detailed herein.
Copies of the full announcement may also be requested from the Company via email at info@indequity.com or from
the sponsor at sponsorteam@merchantec.co.za, at no charge. Given the level 4 lockdown restrictions currently in place,
these will be sent electronically. Any investment decision should be based on the full announcement released on SENS
and published on the Company’s website.


Directors: AV van Jaarsveldt* (British), LJ van Rensburg, G Williamson*, JF Zwarts*, TE Vorster (* non-executive)
Company secretary: W du Preez
Transfer secretary: Link Market Services South Africa (Pty) Ltd
Registered address: First Floor, Cascade House, Constantia Office Park, cnr 14th Avenue and Hendrik Potgieter Road,
Constantia Kloof, Johannesburg, 1709
Postal address: PO Box 5433, Weltevredenpark, 1715
Telephone: (+2711) 475-0816
Fax: (+2711) 475-0877
Website: www.indequity.com
Sponsor: Merchantec Capital

5 May 2020

Date: 05-05-2020 08:00:00
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