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AFRICAN EQUITY EMPOWERMENT INVESTMENTS LIMITED - Short Form Announcement - Reviewed Consolidated Results for the Year Ended 31 August 2019 and Dividend Declaration

Release Date: 23/12/2019 13:50
Code(s): AEE     PDF:  
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Short Form Announcement - Reviewed Consolidated Results for the Year Ended 31 August 2019 and Dividend Declaration

African Equity Empowerment Investments Limited
(Incorporated in the Republic of South Africa)
Registration number 1996/006093/06
Share code: AEE and ISIN: ZAE000195731
(“AEEI” or “the Group” or “the Company”)

SHORT FORM ANNOUNCEMENT - REVIEWED CONDENSED CONSOLIDATED ANNUAL RESULTS FOR THE
YEAR ENDED 31 AUGUST 2019
AND FINAL DIVIDEND DECLARATION

Shareholders are hereby advised that the AEEI Group’s reviewed condensed
consolidated results for the year
ended 31 August 2019 are available on AEEI’s website and can be viewed at:

https://senspdf.jse.co.za/documents/2019/jse/isse/aee/AEEAUG2019.pdf


FINANCIAL HIGHLIGHTS

•     Revenue increased by 243% from R701m to R2,4bn

•     Headline earnings increased by 276% from R119m to R448m

•     Headline earnings per share increased by 276% from the 24.24c to 91.16c

•     Normalized headline per share increased by 300% from 25.09c to 100.22c

•     Net cash generated from operating activities increased by 9% from R131m to R143m

•     Total assets at year-end have grown to R7.4bn

•     Net asset value per share increased by 12% from 1152.98c to 1294.69c

•     Gross final dividend of 6 cents per share declared to shareholders, which
equates to a total dividend of 17 cents for the 2019 financial year, an increase of 11% from
prior year.

•     A total dividend to shareholders for the 2019 financial year equates to
R83.5m


GROUP PERFORMANCE

The Group delivered excellent revenue growth due to both organic and acquisitive
growth predominantly from the technology and fishing divisions respectively. Revenue increased
significantly by 243% from R701m to R2.4bn as a result of recognising revenue growth of R1,6bn from the technology
division and R83m from fishing and brands division.

Due to AEEI regaining control over AYO, the Group incurred a once-off accounting
loss on deemed disposal of associate amounting to 2.4bn in the current year. This resulted in the Group’s
profit before tax decreasing from 6.01bn to a loss of 2.39bn and profit before tax decreased by 140%.

Should the aforementioned loss and non-recurring items be excluded, a normalized
profit before tax of R240m would have been achieved by the Group.

Earnings per share (“EPS”) decreased by 131% from 1016.01c to a loss per share
of 313.55c, however headline earnings of R448m was achieved during the year resulting in headline earnings
per share (“HEPS”) increasing by 276% from 24.24c to 91.16c. , while the Group’s normalized HEPS increased by
300% from 25.09c to 100.22c.

The increase in HEPS during the year is an indication of the strategic plans in place driving both organic and
acquisitive growth in revenue and earnings.

The net asset value (“NAV”) increased by 12% from R5.67bn to R6.36bn as a result
of the strengthened financial position. The NAV per share amounted to 1294.69c per share despite a challenging
national economy, stakeholder scrutiny and market forces.


COMPANY PRIOR YEAR ERROR

AEEI’s management recognizes that a prior year error was made in determining the fair value of the investment
in subsidiaries where certain items should not have been included in the fair value calculation. This error was 
identified through the JSE’s Proactive Monitoring process and requires a retrospective restatement of the
Company’s annual financial statements for the year ended 31 August 2017 and 2018. For 2017 and 2018 financial
year, this resulted in a restatement of retained earnings. Refer to long-form SENS announcement released on
23 December 2019.

DECLARATION OF CASH DIVIDEND
                                                   R’000
Dividend declared after reporting date*            R29 461
Gross Dividends per share (cents)                  6 cents

*These dividends were declared subsequent to the respective reporting period.

Notice is hereby given that a final gross dividend of 6 cents per share has been
declared out of income reserves in respect of ordinary shares of no par value for the year ended 31 August 2019.

A dividend withholding tax of 20% or 1.20 cents per share will be applicable,
resulting in a net dividend of 4.80 cents per share, unless the shareholder is exempt from paying dividend
withholding.

The number of ordinary shares in issue at declaration date is 491 022 434 and the income tax number of the Company 
is 9314001034.

The salient dates of this dividend distribution are:

Gross dividend (cents per share)                        6.00
Dividend net of dividend withholding tax                4.80
Last day to trade cum dividend                          Tuesday, 28 January 2020
Trading ex-dividend commences                           Wednesday, 29 January
2020
Record date                                             Friday, 31 January 2020
Date of payment                                         Monday, 3 February 2020

Share certificates may not be dematerialised or rematerialized between Wednesday, 29 January 2020 and Friday,
31 January 2020, both days inclusive.

STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION

This short-form announcement contains only a summary of the information in the
full announcement and does not contain the full and complete details and is the responsibility of the
directors.

Please refer to the full announcement for additional information. The full announcement has been released on SENS
and is also available for viewing on AEEI’s website at https://aeei.co.za/sens-announcement/ or may be requested 
and obtained in person, at no charge, at the registered  office of the company or the offices of the sponsor during 
business hours. Any investment decisions by investors  and/or shareholders should be based on consideration of the 
full announcement released on AEEI’s website and published on SENS.


APPRECIATION

We wish to thank our employees, Group executives, management, our Board of Directors, as well as our strategic
partners, stakeholders and business partners for their loyalty and dedication in contributing to the success of the Group.

23 DECEMBER 2019

DIRECTORATE AND STATUTORY INFORMATION

Directors
#*Aziza Begum Amod (Chairman; *Khalid Abdulla (Chief Executive Officer);
*Chantelle Ah Sing; #*Advocate Ngoako Ramatlhodi; #*Ismet Amod; #*Gaamiem Colbie; #*Moleboheng Mosia; #* Jowayne van Wyk
*Executive directors
#* Non-Executive directors

Company Secretary:           Damien Terblanche

Business address:            1st Floor, Waterway House North, 3 Dock
Road
                             Victoria and Alfred Waterfront, Cape Town
                             Western Cape, 8001

Email:                       damien@aeei.co.za

Transfer secretaries:        Link Market Services South Africa (Pty)
Ltd,
                             Rennie House, 13th Floor, 19 Ameshoff
Street, Braamfontein, 2001

Auditors:                    BDO South Africa Incorporated
                             6th Floor, 123 Hertzog Boulevard, Cape
Town, 8001
                             (PO Box 2275, Cape Town, 8000)

Sponsor:                     Vunani Capital

Date: 23-12-2019 01:50:00
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