CSG HOLDINGS LIMITED - Trading Statement

Trading Statement

CSG HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2006/011359/06)
Share code: CSG
ISIN: ZAE000184438
(“CSG” or “the Company”)


TRADING STATEMENT

In terms of the JSE Limited Listings Requirements, 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 differ by 20% or more from the financial results for the
previous corresponding period.

The Company hereby advises that a reasonable degree of certainty exists that for the six
months ended 30 September 2019:

-     headline losses per share will be between 5.00 cents and 5.50 cents, compared to the
      headline earnings per share of 9.19 cents reported for the prior comparative period; and

-     basic losses per share will be between 5.00 cents and 5.50 cents, compared to the basic
      earnings per share of 9.26 cents reported for the prior comparative period.

The losses incurred were as a result of a combination of the current challenging economic
business environment across all three divisions but mainly due to the underperformance of
the security companies, 7 Arrows and Revert, which incurred an operating loss of
approximately R46 million. An in-depth review of the operating performance of these
businesses during the period revealed that the underperformance of 7 Arrows and Revert was
worse than anticipated, accordingly immediate action was taken to rationalise and consolidate
these businesses, which included retrenchments across the board. The added retrenchment
costs were accounted for during this period. Management is confident that the aggressive
turnaround plan will deliver the necessary results.

The financial information on which this trading statement is based has not been reviewed or
reported on by the auditor of the Company. The unaudited interim results for the 6 months
ended 30 September 2019 are expected to be published on or about 22 November 2019.

Pretoria
18 November 2019

Sponsor
PSG Capital

Date: 18/11/2019 05:30:00
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