ADVTECH LIMITED - Trading statement for the 6 months ended 30 June 2019

Trading statement for the 6 months ended 30 June 2019

ADvTECH Limited
(Incorporated in the Republic of South Africa)
(Registration number 1990/001119/06)
Share code: ADH        ISIN: ZAE000031035
("ADvTECH" or "the company")


TRADING STATEMENT FOR THE 6 MONTHS ENDED 30 JUNE 2019

In terms 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 show a 20% or more difference from those of the
previous corresponding period.

ADvTECH advises shareholders, with reasonable certainty, that basic earnings per share
(“EPS”) and Headline earnings per share (“HEPS”) for the six months ended 30 June 2019
will be between 25% and 35% higher than the comparative reporting period for the six months
ended 30 June 2018 (“the comparative period”). EPS is expected to be between 42.0 and 45.4
cents per share as compared to 33.6 cents per share (restated from 34.8 cents per share as
a result of the implementation of IFRS 16) for the comparative period. HEPS is expected to
be between 42.3 and 45.6 cents per share as compared to 33.8 cents per share (restated from
35.0 cents per share as a result of the implementation of IFRS 16) for the comparative period.

The company has consistently reported normalised earnings per share (“NEPS”) as a way of
omitting the effect of one-off transactions and corporate action costs from its results. In the
current year, these include foreign exchange and bargain purchase gains on the acquisition
of IIE MSA, insurance proceeds received in relation to the previously reported fraud event and
other corporate actions costs. Omitting these aspects from consideration will result in NEPS
being between 5% and 9% higher than the comparative period, resulting in NEPS of between
41.7 and 43.3 cents per share for the six months ended 30 June 2019 as compared to 39.7
cents per share (restated from 40.9 cents per share as a result of the implementation of IFRS
16) for the comparative period.

The company has implemented IFRS 16 using the retrospective approach which requires the
results for the comparative period ended 30 June 2018 to be restated. Based on the previous
published EPS of 34.8 cents per share and HEPS of 35.0 for the comparative period
ADvTECH expects an increase of between 21% and 30% in EPS and HEPS. Based on the
previous published NEPS of 40.9 cents per share for the comparative period, ADvTECH
expects an increase of between 2% and 6% in NEPS.

The financial information on which this trading statement is based has not been reviewed, or
reported on, by the company’s external auditors.

ADvTECH expects to release results for the 6 months ended 30 June 2019 on the
Johannesburg Stock Exchange News Service (“SENS”) on or about Thursday, 29 August
2019.

21 August 2019
Johannesburg
Sponsor: Bridge Capital Advisors Proprietary Limited

Date: 21/08/2019 08:45:00
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.