KAYDAV GROUP LIMITED - Update on Covid-19 and trading statement2020/06/30 09:15:00
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Update on Covid-19 and trading statement KAYDAV GROUP LIMITED (Incorporated in the Republic of South Africa) (Registration number 2006/038698/06) JSE share code: KDV ISIN: ZAE000108940 (“KayDav” or “the company” or “the Group”) UPDATE ON COVID-19 AND TRADING STATEMENT KayDav wishes to update shareholders on the position of the Group considering the impact of COVID-19 and specifically the national lockdown on trading activity. Trading activity The impact of the national lockdown on trading for the Group to date, was as follows: - For the period 27 March 2020 to 30 April 2020, trading in non-essential goods was not allowed, as a result of which KayDav’s revenue in April 2020 was more than 80% below that of April 2019. - For the month of May 2020, following the relaxation of restrictions on economic activity but with limitations on large sections of our customer base still in place, revenue was 30% below that of May 2019. - During June 2020 and as at the date of this announcement, revenue was on par with that of June 2020 for the same number of trading days and is expected to exceed June 2019 revenue. KayDav continues to operate under conditions marked by high levels of uncertainty in the local and international economy, however it is clear that the pandemic will have a significant impact on the Group’s profitability for the six months ended 30 June 2020. Liquidity The Group maintains a strong liquidity position with sufficient cash and available banking facilities. The Group continues to focus on strong debtors’ collection and managing optimum stock levels. In addition, various measures have been taken to control costs and conserve cash including: - Limited employee remuneration reductions - Rental reductions - Postponement of non-essential capital expenditure 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 current reporting period will differ by at least 20% from the financial results for the previous corresponding period. Accordingly, KayDav hereby notifies shareholders that the company expects earnings per share and headline earnings per share for the six months ended 30 June 2020 to fall below the 3.1 cents per share for the six months ended 30 June 2019 by at least 80%. The decrease is the result of the impact of the COVID-19 pandemic and the national lockdown on trading during this period. KayDav is not able to provide specific percentages and numbers, or ranges and numbers, to describe the difference in the financial results for the period. Once the company obtains reasonable certainty in this regard a further trading statement will be released. The information on which this trading statement is based has not been reviewed or reported on by KayDav’s auditors. The audited results for the six months ended 30 June 2020 are anticipated to be released by the end of August 2020. 30 June 2020 Sponsor Java Capital Date: 30-06-2020 09:15:00 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.