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

TRELLIDOR HOLDINGS LIMITED - Covid-19 Update and Trading Statement

Release Date: 29/05/2020 10:30
Code(s): TRL     PDF:  
Wrap Text
Covid-19 Update and Trading Statement

Trellidor Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1970/015401/06)
Share Code: TRL
ISIN Code: ZAE000209342
(“the Company” or “the Group”)


COVID-19 UPDATE AND TRADING STATEMENT


The implementation of the national lockdown on 27 March 2020 in response to the COVID-19
pandemic, has resulted in no manufacturing operations taking place for a five week period and
limited production (at 30% capacity) from 4 May 2020 in line with the regulations. Throughout
the duration of the lockdown, our sales and installation activities have been attending to
emergency repairs and installation in compliance with the essential service regulations.

Government has recently announced a move to Level 3 of the lockdown that will see
manufacturing capacity increased gradually towards 100%. The health and safety of our
employees, suppliers and customers is paramount and comprehensive workplace protocols
have been implemented in line with government guidelines, which include employee training,
personal protective equipment, on-site medical resources, hygiene resources, social
distancing, screening and increased sanitation and hygiene processes.

The Group has been in close communication with its lenders, employees, trading partners,
suppliers and landlords in order to ensure mutually sustainable operating solutions in these
extraordinarily difficult times. The Group has implemented the following steps to reduce costs
and preserve cash:

•   Repayment moratorium: The Group lenders have granted a repayment moratorium on all
    its funding facilities for a period of 3 months.
•   Reduction of payroll burden: In order to alleviate the cash flow burden on both the
    Company and its employees, applications have been submitted for the UIF TERS grant
    and pension fund contribution holidays for a maximum period of three months.
•   Rent relief: The Group is seeking rent relief with landlords for the period of the lock down
    and the subsequent low demand periods. Negotiations in this regard continue.

As a result of these interventions, the Group remains liquid, solvent and cash positive, despite
significantly reduced sales revenue in the month of April 2020 and reduced debtor receipts in
April and May 2020.

The continued lockdown is expected to put further pressure on the disposable income of an
already constrained consumer and the Group has anticipated and is planning for reduced
demand through the next six months as the economy gradually recovers.


Trading Statement

In compliance with paragraph 3.4(b) of the Listings Requirements of the JSE Limited, a listed
company is required to publish a trading statement as soon as it becomes reasonably certain
that the financial results for the next period to be reported on will differ by 20% or more from
the financial results for the previous corresponding period.

Given the trading environment, the Group hereby advises shareholders that, for the twelve-
month period ending 30 June 2020, a reasonable degree of certainty exists that the Group’s:

•   earnings per share ("EPS”) will be at least 50.0% or 20.00 cents per share lower than the
    40.00 cents reported in the comparable period; and
•   headline earnings per share (“HEPS”) will be at least 50.0% or 20.05 cents per share lower
    than the 40.10 cents reported in the comparable period.

A further trading statement will be issued as soon as there is a reasonable degree of certainty
as to the likely range within which the Company's HEPS and EPS is expected to decrease.

The information on which this trading statement is based has not been reviewed and/or
reported on by the Group’s auditors.

It is expected that the audited financial results for the 12-month period ended 30 June 2020
will be published on SENS by the Company on or about Monday, 07 September 2020.


Durban
29 May 2020

Sponsor
PSG Capital

Date: 29-05-2020 10:30:00
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.

Share This Story