| Wed 24 Jul 2019, 14:30 | | ELLIES HOLDINGS LIMITED - Trading statement |
|
ELI 201907240040A
Trading statement
ELLIES HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2007/007084/06)
JSE share code: ELI ISIN: ZAE000103081
("Ellies" or the "Company")
TRADING STATEMENT
In terms of the JSE Listings Requirements, companies are required to publish a trading statement as soon as they are
satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported
upon next will differ by at least 20% from the previous corresponding period.
Shareholders are accordingly advised that Ellies expects a loss per share ("LPS") for the year ended 30 April 2019 of
between 3,8 cents and 5,1 cents per share when compared to the earnings per share ("EPS") of 6,84 cents per share for the
year ended 30 April 2018. A headline loss per share ("HLPS") for the year ended 30 April 2019 of between 3,0 cents and
4,5 cents is also expected compared to the headline earnings per share ("HEPS") of 7,89 cents per share for the year
ended 30 April 2018.
The decline is mainly attributable to:-
- a marginal decline in revenue compared to the 2018 fiscal year;
- new management re-assessing the saleability of inventory and the recoverability of accounts receivable, both of
which resulted in write-downs and increases in provisions;
- impairment of the Ellies Industries Pty Ltd manufacturing plant in light of losses due to a lower throughput as a
result of lower demand for the Company's products;
- significant operating expenses which included consulting and legal fees in dealing with a number of legacy
litigation issues.
The interim financial results for the six months ended 31 October 2018 ("Interim Results") included R75 million in
respect of a profit on the discontinued operation of Botjheng Water ("Botjheng Water"), which after netting off legal
fees and other expenses amounted to R69,8 million. It was expected by the then board of directors that Botjheng Water
would be liquidated and deregistered by year end. Due to changes at executive level, the liquidation and deregistration
were not concluded. The new Board, appointed on 4 April 2019, reviewed the decision and concluded that it was
premature to deconsolidate Botjheng Water and reversed the decision. This resulted in the R75 million profit from the
deconsolidation of Botjheng Water, not being included in the year-end results.
During the period, R33 million was received from the Cooperative Muratori Cementisi Ravenna arbitration which has the
effect of reducing the debt owing by Botjheng Water. Whilst a further gain is expected to be realised when Botjheng
Water is wound up in a future period, it will not result in a cash flow.
The financial results for the year ended 30 April 2019 are anticipated to be released on or about 31 July 2019.
The forecast financial information on which this trading statement is based has not been reviewed or reported on by the
Company´s external auditors.
24 July 2019
Sponsor
Java Capital
Date: 24/07/2019 02:30:00
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