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

VALUE GROUP LIMITED - Trading update

Release Date: 08/10/2019 15:03
Code(s): VLE     PDF:  
Wrap Text
Trading update

Value Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1997/002203/06
Share code: VLE
ISIN code: ZAE000016507
(“Value” or “the Group”)


TRADING UPDATE

In terms of the listings requirements of the JSE Limited, a listed company is required to
publish a trading update as soon as it becomes reasonably certain that the financial results
for the period to be reported on next will show a 20% or more difference from the previous
corresponding period.

In line with the stagnant economy which continues to be underpinned by very low growth
rates, the first six months of the current financial year has proven to be very challenging with
pricing and volume pressures affecting all operating segments of the Group. Volume
decline was however partially mitigated by management’s strategic objectives of growing
the customer base organically in addition to cross selling of services whilst improving
operational efficiencies.

The Group adopted IFRS16 effective 1 March 2019 whereby a right of use asset and an
associated liability is raised for its operating leases. The nature of these expenses relates to
a depreciation charge on the right of use assets and an interest expense on the lease
liabilities. Previously, the Group recognised operating lease expenses on a straight line
basis over the term of the leases. The Group applied the full retrospective approach in its
adoption of IFRS16 which requires the restatement of comparative financial information.
Accordingly, the Group benefitted from a reduced interest cost in comparison to the
previous restated interim period due to reduction of the capital outstanding on lease
liabilities.

Lastly, the Group has also benefitted from a reduced effective tax rate due to the
comparative period’s inclusion of a tax underprovision pertaining to a prior period in addition
to the current period’s receipt of a tax refund in respect of an allowance granted which was
not claimed previously.

As a result of the cumulative effect of the above, shareholders are advised that headline
earnings per share for the interim period ended 31 August 2019 will be 20% to 40% higher
than that achieved in the restated corresponding period. This translates to headline
earnings per share ranging from 29,3 to 34,1 cents per share in relation to the restated
comparative period (24,4 cents per share) and basic earnings per share ranging from 27,7
to 32,3 cents per share in relation to the restated comparative period (23,1 cents per share).

The financial results, on which this trading update has been based, have not been reviewed
nor reported on by Value’s auditors. The results for the 6 months ended 31 August 2019
will be published on or about 17 October 2019.


Johannesburg
8 October 2019

Sponsor:
Investec Bank Limited

Date: 08/10/2019 03:03:00
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