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CITY LODGE HOTELS LIMITED - Trading statement

Release Date: 04/02/2020 10:03
Code(s): CLH     PDF:  
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Trading statement

City Lodge Hotels Limited
“City Lodge” or the “Company”
(Reg. No. 1986/002864/06)
(Incorporated in the Republic of South Africa)
Share Code: CLH    ISIN Code: ZAE000117792

Trading statement

In terms of the JSE Limited Listings Requirements, companies are
required to publish a trading statement as soon as they are
reasonably certain that the financial results for the current
reporting period will be more than 20% different than those of
the prior comparative period.

In this regard, shareholders are advised that, for the six
months ended 31 December 2019, the Company expects to report:

•   normalised headline earnings of between R83.3 million to
    R75.1 million, being a decrease of between 49% and 54%
    compared to normalised headline earnings of R163.3 million
    for the six months ended 31 December 2018 (“HY2018“);

•   normalised diluted headline earnings per share (“EPS“) of
    between 191.3 cents to 172.6 cents, being a decrease of
    between 49% and 54% compared to normalised diluted headline
    EPS of 375.1 cents for HY2018;

•   basic EPS of between 136.4 cents to 117.5 cents, being a
    decrease of between 64% and 69% compared to basic EPS of
    378.9 cents reported for HY2018; and

•   basic headline EPS of between 136.4 cents to 117.5 cents,
    being a decrease of between 64% and 69% compared to basic
    headline EPS of 378.9 cents reported for HY2018;

The decrease is as a result of weaker trading conditions in the
Company’s primary and secondary markets as well as the adoption
of IFRS 16 Leases in the current reporting period. On a
comparable basis, excluding the effects of implementing IFRS 16
and unrealised exchange gains or losses, normalised headline
earnings would be between R119.2 million to R111.0 million,
being a decrease of between 27% and 32% compared to the
normalised headline earnings of R163.3 million for HY2018. In
South Africa, the Company’s primary market, normalised profit
after tax, excluding IFRS 16, decreased by between 12% and 17%.

Normalised headline earnings and normalised diluted headline EPS
comprise   headline  earnings  adjusted   for  the   effects  of
transactions relating to BEE and those of a non-recurring and/or
core nature. They are the responsibility of the directors and
have been provided for illustrative purposes only. Because of
their nature, normalised headline earnings and normalised
diluted headline EPS usually differ from City Lodge’s headline
EPS.

Shareholders are advised that the financial information on which
this trading statement is based has not been reviewed or
reported on by the Company’s auditors. City Lodge’s results for
the six months ended 31 December 2019 will be released on SENS
on or about 20 February 2020.

4 February 2020
Bryanston

Sponsor
Nedbank Corporate and Investment Banking

Date: 04-02-2020 10:03:00
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