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Updated Trading Statement for the six months ended 30 June 2020
BELL EQUIPMENT LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1968/013656/06
ISIN: ZAE000028304
Share Code: BEL
(“the Company”)
UPDATED TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2020
As an update to the trading statement issued by the Company on 15
July 2020, shareholders are advised that the Company now expects
to report an earnings loss per share of at least 48 cents (a
reduction of 213 cents per share or 129%) and a headline loss per
share of at least 31 cents (a reduction of 195 cents per share or
119%) for the six months ended 30 June 2020 compared with earnings
per share and headline earnings per share of 165 cents and 164
cents respectively for the six months ended 30 June 2019. A further
trading statement for the six months ended 30 June 2020 will be
released on SENS once the Company has reasonable certainty
regarding the extent of the expected decrease in its results for
the six months ended 30 June 2020.
The expected decrease in earnings is mainly due to weak economic
conditions, especially in South Africa, the negative impact on
production and sales performance of measures taken by governments
globally to curb the spread of the COVID-19 pandemic, as well as
on the market value of used equipment in certain markets, resulting
in expected lower selling prices and a loss on the return and
subsequent sale of used equipment on which residual value
guarantees have been provided by the group, in the normal course
of business, to a financial institution. Management has also
assessed the impact of these economic conditions on the judgements
and estimates exercised in determining the carrying values of
certain items on the statement of financial position and has made
additional provisions on certain categories of inventory and
impairments to certain non-core development projects. Although
steps have been taken to reduce costs during the period, a key
management focus remains the restructure of operations to reduce
the cost base and improve operating margins.
As previously reported, the Company has generated positive
cashflow during the six-month period, mainly due to a more
conservative outlook on sales, lower production volumes and
reducing inventory in line with market demand.
The financial information on which this trading statement is based
has not been reviewed and reported on by the Company’s external
auditors.
The results for the six months ended 30 June 2020 are expected to
be announced on SENS on or about 7 September 2020.
Richards Bay
31 August 2020
Sponsor: INVESTEC BANK LIMITED
Date: 31-08-2020 03:23:00
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