JSE Sens

VALUE GROUP LIMITED - Reviewed Consolidated Financial Results for the year ended 28 February 2021 and Updated Opinion and Recommendation

2021/05/04 13:26:00

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                    Reviewed Consolidated Financial Results for the year ended 28 February 2021 and Updated Opinion and Recommendation

Value Group Limited 

(Incorporated in the Republic of South Africa) 

Registration number 1997/002203/06 

ISIN number: ZAE000016507    Share code: VLE 





C D Stein* (Chairman), 

S D Gottschalk (CEO), 

C L Sack,  N M Phosa*, 

M Padiyachy, 

V W Mcobothi*, 

B Bulo* 

*Non-executive director 

Sponsor: Investec Bank Limited 

Company Secretary:

Fluidrock Advisory (Pty) Ltd

Transfer secretary:

Computershare Investor 

Services (Pty) Ltd

Registered office: 

49 Brewery Road, 

Isando, 1600, 

PO Box 778, 

Isando, 1600, 

Tel: (011) 570 2000



Revenue UP 2% R2,94bn 

Headline earnings per share UP 11% 102,4 cents 

Earnings per share UP 12% 99,9 cents 

Net asset value per share up 11% 627,9 cents 

Cash generated by operations UP 4% R621m 

Value Group Limited and its subsidiaries ('the Group') provide a comprehensive range of tailored logistical solutions 

throughout southern Africa. On 1 May 2021, the Group celebrated its 40th year anniversary milestone since its early 

beginnings of providing truck rental services. 


The Group has had to navigate its way as a result of challenges brought about by the poor economic climate and the 

imposition of the initial highly restrictive lockdowns in order to contain the spread of the COVID-19 pandemic. 

In particular, the implementation of level 5 lockdown from 27 March 2020 to 30 April 2020, resulted in a material 

reduction in revenue. The Group was designated as an essential service provider and was permitted to provide services 

to a limited number of customers supplying essential goods. Accordingly, April 2020 revenue was 32,6 % below that of 

April 2019. As lockdown restrictions eased to level 4 in May 2020, more of the Group's customers were permitted to 

trade which resulted in a material increase in revenue compared to April 2020. As a result, revenue in May 2020 was 

5.3% less than that in May 2019. From 1 June 2020 onwards, with the shift to less restrictive lockdown levels, the 

Group eventually returned to normal operational capacity. 

Despite these challenges, the Group (and particularly the retail logistics division) has been successful in growing 

its customer base by on boarding a number of new customers during this unprecedented time. In addition, the Group 

experienced an unprecedented extended peak period in December 2020 and into January 2021 where volumes were 

extraordinarily high resulting from the availability of products that were previously unavailable during the 

restrictive lockdown periods and thereafter. This tempered the reduction in revenue during the lockdown periods with 

revenue increasing by 2% from R2,88 billion to R2,94 billion. 

The combination of the extended peak period, together with improvements in trading and various cost saving 

initiatives, contributed to gross profit margins being maintained at 33% with gross profit increasing by R24,5 million 

to R972,3 million. In addition, these measures resulted in substantial savings with operating expenses increasing by 

only 2,9% or R21 million to R739,8 million. The effect of reduced other income and increased operating costs were 

insufficient to improve operating profits which reduced by 3% from R257,7 million to R249,5 million. 

Net profit before tax however increased mainly due to a R14,4 million net finance cost reduction which arose due to 

reductions in asset base funding costs and IFRS 16 (lease) funding costs. The Group also benefitted from a reduction 

in the effective tax rate from 24,3% to 23,3%. 

The board is thus pleased to advise that the Group produced an 11% increase in headline earnings for the year ended 

February 2021 from 92,2 cents to 102,4 cents per share. 

Increases in goods and vehicles for sale inventory levels in addition to increases in receivable balances from growth 

in the customer base have been offset by increased payables. In addition, continued focus on working capital 

management yielded improved cash flow results. Notwithstanding the financial difficulties that affected many 

businesses during this extraordinary period, collections were better than expected. In addition, proceeds on disposal 

of rental assets were very high with disposals generating R76,6 million. Consequently, cash generated by operations 

increased by 4% to R620,9 million. 


Shareholders are referred to the Firm Intention Announcement released on SENS on Friday, 26 February 2021 and the 

Offer Circular distributed to Shareholders on Thursday 25 March 2021 pertaining to: 

- An offer by Value Group Ltd to Eligible Shareholders to repurchase by way of a Scheme of Arrangement ('the scheme') 

all their shares in Value Group Ltd for a cash consideration of R6.75 per share ('the Scheme Consideration'); and 

- Separate but concurrently with the scheme, a conditional General Offer by Value Group Ltd to Eligible Shareholders 

('the general offer'), to repurchase all of their shares in Value Group Ltd for a cash consideration of R6.75 per 

share ('the General Offer Consideration'). The general offer will only be implemented should the scheme fail; and 

- The subsequent delisting of all of Value Group Ltd's Ordinary Shares from the JSE, in terms of paragraph 1.17(b) of 

the Listings Requirements, pursuant to the implementation of the scheme or, if the scheme fails, pursuant to the 

implementation of the general offer subject to the required delisting resolution being approved. 

Shareholders are reminded of the salient dates and times as contained in the SENS announcement dated 25 March 2021 and 

the Offer Circular. The salient dates for Shareholders to vote on the above-mentioned corporate actions are as 


Last day to trade to be eligible to vote       Tuesday, 18 May 2021  

Record date                                     Friday, 21 May 2021  

General meeting  convened electronically      Thursday, 27 May 2021

                                                           at 11:00 


The Independent Expert, Mazars Corporate Finance (Pty) Ltd, has considered the contents of these Reviewed Results and 

have confirmed there is no change to its opinion that the Scheme Consideration and General Offer Consideration are 

fair and reasonable to Eligible Shareholders. The full substance of the Independent Expert's report in connection with 

the scheme and general offer is set out in the Offer Circular. 

The Independent Board, taking into account the above confirmation and the contents of the Reviewed Results, has 

unanimously confirmed there is no change to their opinion that the terms and conditions of the scheme and the general 

offer are fair and reasonable to Shareholders and, accordingly, unanimously recommends that Shareholders vote in 

favour of the Resolutions to be tabled at the general meeting. 


No final dividend has been recommended or declared due to the pending cash outflows required to fund the offer to 

minority shareholders. 


This short form announcement is the responsibility of the directors and is only a summary of the information in the 

full announcement. The full announcement was released on SENS at 

https://senspdf.jse.co.za/documents/2021/jse/isse/VLE/YE21.pdf on 4 May 2021 and is also available on the Group's 

website at www.value.co.za. The Group's auditor, SVG has reviewed the full announcement. Copies of the full 

announcement and the unmodified review report of the auditors are available for inspection and may be requested at the 

company's registered office, at no charge, during office hours. Any investment decision must be based on the full 

announcement published. 

For and on behalf of the board 

C D Stein                                            S D Gottschalk  

Chairman                                    Chief Executive Officer  


4 May 2021

Date: 04-05-2021 01:26:00
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