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AFRICAN EQUITY EMPOWERMENT INVESTMENTS LIMITED - CANCELLATION OF S431959 Trading Statement and Restatement of Prior Period Interim Results

Release Date: 12/06/2020 17:09
Code(s): AEE     PDF:  
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CANCELLATION OF S431959 Trading Statement and Restatement of Prior Period Interim Results

African Equity Empowerment Investments Limited
(Incorporated in the Republic of South Africa)
Registration number 1996/006093/06
Share code: AEE
ISIN: ZAE000195731
("AEEI" or “the Company”)

TRADING STATEMENT AND RESTATEMENT OF PRIOR PERIOD INTERIM RESULTS

In terms of para 3.4(b) of the JSE Listings Requirements, listed companies
are required to publish a trading statement as soon as the Board of directors
is satisfied that a reasonable degree of certainty exists that the financial
results for the period to be reported on next will vary by 20% or more when
compared to those of the prior reporting period.

For purposes of this trading statement it is necessary to compare the earnings
per share and the headline earnings per share for the six month period ended
29 February 2020 to the restated figures for the six month period ended 28
February 2019 as set out below.

Accordingly, the Board of directors is satisfied that a reasonable degree of
certainty exists that the Company expects that the Group’s basic earnings
per share for the six month period ended 29 February 2020 will be between
4.74 cents and 19.69 cents per share, compared to the restated 74.76 cents
in the prior corresponding period representing a decrease in basic earnings
per share of between 73% and 93%.

The Company also expects that the Group’s headline earnings per share for
the six month period ending 29 February 2020 will be between 10.53 cents and
14.06 cents per share, compared to the restated 17.64 cents in the prior
corresponding period representing a decrease in headline earnings per share
of between 20% and 40%.


RESTATEMENT OF PRIOR PERIOD INTERIM RESULTS

Shareholders are advised that subsequent to 28 February 2019, the executive
management of AYO Technology Solutions (“AYO”) identified certain corrections
to the unaudited AYO interim results for the six months ended 28 February
2019 and 28 February 2018 following the completion of the interim audits for
six months period ended 28 February 2019 and for six months period ended 28
February 2018. Facts and circumstances which existed before 28 February 2019
and   28 February 2018 became known to AYO and AEEI through the interim
external audit that indicated that AYO had applied incorrect application of
judgement and hence accounting errors occurred in AYO’s unaudited results
for the six months period ending 28 February 2019 and 28 February 2018.
Consequently, AEEI executive management had to review the impact on the Group
interim results for these prior periods.

AEEI management identified accounting errors and classification adjustments
from AYO’s audited interim results that are recognised as prior period
errors, requiring a retrospective restatement of AEEI’s interim financial
statements for the period ended 28 February 2019 and 28 February 2018. The
above restatement had an effect on the reported earnings on the statement of
profit or loss and other comprehensive income, statement of financial
position and statement of cash flows. This impact will be disclosed in detail
in the interim unaudited financial results for the period ending 29 February
2020.

The abovementioned financial information on which this trading statement is
based has not been reviewed or reported on by the Company’s auditors. The
interim unaudited financial results for the six month period of AEEI are
expected to be released on SENS on or before 15 June 2020.

Cape Town
11 June 2020

Sponsor
Vunani Sponsor

Date: 12-06-2020 05:09:59
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