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BARLOWORLD LIMITED - Trading statement for the six months ended 31 March 2021
2021/05/11 16:40:00Download PDF Stock report
Trading statement for the six months ended 31 March 2021 Barloworld Limited (Incorporated in the Republic of South Africa) (Registration number 1918/000095/06) (Income Tax Registration number 9000/051/71/5) (Share code: BAW) (JSE ISIN: ZAE000026639) (Share code: BAWP) (Bond issuer code: BIBAW) (JSE ISIN: ZAE000026647) (Namibian Stock Exchange share code: BWL) ('Barloworld” or the “Company' or the “Group”) TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2021 Shareholders are advised that the Group is currently finalising its interim results for the six months ended 31 March 2021(“the period”), which will be released on the Stock Exchange News Service (“SENS”) of the JSE Limited (“JSE”) on or about 24 May 2021. In terms of the JSE Listings Requirements, the Group is satisfied that a reasonable degree of certainty exists that the financial results for the period will differ by at least 20% from the six-month interim period ended 31 March 2020 (“the prior period”). The Group’s results for the period show a significant improvement, impacted by several factors, including: • The acquisitive growth of Ingrain and Mongolia contributing positively to earnings; • The improved results of the Equipment southern Africa and Russia operations; and • A swift implementation of austerity measures. Basic earnings per share (“EPS”), basic headline earnings per share (“HEPS”) and normalised basic HEPS from continuing operations The range for basic EPS, basic HEPS and normalised basic HEPS from Group and continuing operations for the six months ended 31 March 2021 are expected to be as follows: ZAR cents 31 March 2021 31 March Expected 31 March Expected Expected 2020 range of 2020 range of Results (Restated) increase or (Reported) increase or (decrease) (decrease) based on 31 based on 31 March 2020 March 2020 (Restated) (Reported) Basic (loss)/earnings per share - 337.6 to 405.1 (729.7) - (729.7) - Group Basic (loss)/earnings per share Continuing Operations 382.4 to 458.9 (687.3) - (826.2) - Discontinued Operations (44.8) to (53.8) (42.4) (6%) to (26%) 96.5 - Basic HEPS – Group 339.7 to 397.7 69.9 - 268.4 27% to 48% Basic Headline (loss)/earnings per share 374.2 to 439.1 110.9 Continuing Operations (34.5) to (41.4) (41.0) - (30.3) - Discontinued Operations 1% to 16% 298.7 - Normalised basic HEPS – Group 369.1 to 442.9 156.0 - 354.0 5% to 25% Normalised basic HEPS – 407.3 to 488.7 180.0 - N/A - Continuing operations Notes: 1. Normalised basic HEPS figures are the responsibility of the directors and have been presented for illustrative purposes only. Because of their nature, normalised basic HEPS figures may not fairly present Barloworld’s basic HEPS. Accounting presentation changes The income statement reported in the prior period included Avis fleet as a discontinued operation on the basis of management’s firm intention to dilute Barloworld’s interest in Avis Fleet to a 50% shareholding. This decision was reversed and has subsequently been restated as a continuing operation, for comparability and in terms of IFRS. This position will be re-assessed at the appropriate time and in the context of the Group’s strategy and optimal portfolio mix. Going forward Avis Fleet will be re-presented as part of continuing operations. For the period, the Motor retail and Logistics segments are reported as discontinued operations and the comparatives have been restated to reflect this in terms of IFRS, enabling meaningful comparability. Continuing operations include our recent acquisitions, Ingrain as a separate reporting segment and Barloworld Mongolia, as part of Equipment Eurasia. Normalised headline earnings per share from continuing operations (HEPS) Due to the number of items which impacted the Group’s results in the prior period, shareholders are reminded that the Group disclosed Group normalised HEPS of 354 cents, which has been restated to 156 cents due to the depreciation on Avis fleet disclosed as an impairment in terms of IFRS 5 at 31 March 2020. As a result of the ongoing restructuring, the normalised HEPS from continuing operations is perceived as a more relevant measure. Specifically, the costs of our B-BBEE deal Khula Sizwe is normalised together with an additional normalisation adjustment for the adoption of IFRS 16 on the continuing operations. Shareholders are advised that the information contained in this trading statement has not been reviewed nor reported on by Barloworld’s independent external auditors. Sandton 11 May 2021 Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank Limited Enquiries: Nwabisa Piki Group Investor Relations Tel: +27 11 445 1890 E-mail: nwabisap@barloworld.com Date: 11-05-2021 04:40:00 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. 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