SEBATA HOLDINGS LIMITED - Trading Statement

Trading Statement

Sebata Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 1998/003821/06)
Share code: SEB ISIN: ZAE000260493
(“Sebata” or “the Company” or “the Group”)


                                      TRADING STATEMENT


In terms of the Listings Requirements of the JSE Limited, companies are required to publish a trading
statement as soon as they become reasonably certain that the financial results for the period to be
reported on will differ by more than 20% from that of the previous corresponding period.

In light of the disposal of the NOSA Group of Companies during the 2018 financial year, the board of
directors hereby advises shareholders that the continued headline earnings per share (“continued
HEPS”) and continued basic earnings per share (“continued EPS”) are more relevant and appropriate
measures of Group performance. Accordingly, a review of the financial results for the six months ended
30 September 2018 by management has indicated that:
-   The continued EPS is 182.50 cents, reflecting an increase of 346%, compared to the continued
    EPS of 40.92 cents for the six months ended 30 September 2017;
-   The significant increase in continued EPS is a result of the disposal of the NOSA Group of
    Companies;
-   The continued HEPS is 20.76 cents, reflecting a decrease of 51.3%, compared to the continued
    HEPS of 42.64 cents for the six months ended 30 September 2017;
-   The decrease in continued HEPS is a direct result of a key municipal client failing to pay
    approximately R88 million that is due to the Company. While we are confident that we will receive
    the funds the Company has decided, due to the prolonged difficulty in receiving payment, to
    exclude this amount from the period’s earnings. Without this adjustment, continued HEPS would
    have been approximately 20% up on a normalised basis.

As required in terms of section 3.4(b)(vi) of the Listings Requirements of the JSE Limited, a review of
the financial results for the six months ended 30 September 2018 by management has indicated that:
-   The basic earnings per share (“EPS”) is 182.50 cents, reflecting an increase of 136.3%, compared
    to the EPS of 77.22 cents for the six months ended 30 September 2017; and
-   The headline earnings per share (“HEPS”) is 20.76 cents, reflecting a decrease of 73.7%,
    compared to the HEPS of 78.91 cents for the six months ended 30 September 2017.


Outlook
-   The Group has been reorganised into four distinct divisions; Software Solutions, Water
    Technologies, ICT Support Services and Consulting Services. The Group now has a clear focus
    and strategy underpinned by proprietary intellectual property.
-   The Water Technologies division continues to perform well as the demand for our water
    management devices and solutions grows both locally and internationally.
-   The investment in the Software Solutions division is largely behind us. The rewrites were in line
    with changing legislation to the functionality of Local Government’s financial management systems.
    To date, we have successfully implemented the new software at 39 clients. We believe that our
    superior product and reduced competition in the space will yield strong returns on the investment.
-   We anticipate that the dispute with the Purchasers on the Earn Out relating to the disposal of the
    NOSA Group of Companies to be resolved by financial year end. As a result of the dispute, we
    have not been paid out the portion of the purchase price linked to the Earn Out. Once this has
    been resolved we will be in a better position to finalise a further dividend in relation to the sale, as
    previously communicated.

The financial information on which this trading statement is based has not been reviewed or reported
on by the Company’s auditors. Sebata’s financial results are expected to be released on SENS on or
about 18 December 2018.


Johannesburg
14 December 2018

Sponsor
Merchantec Capital

Date: 14/12/2018 02:49:00 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.