JSE Sens

ELB GROUP LIMITED - Trading statement for the year ended 30 June 2019

12 September 2019 - 17:35 PM
ELR
Trading statement for the year ended 30 June 2019

ELB GROUP LIMITED
Incorporated in the Republic of South Africa
(Registration number 1930/002553/06)
ISIN: ZAE000035101
JSE Code: ELR
(ELB or the Company)


TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2019


In terms of the JSE Limited Listings Requirements companies are required to provide guidance to the
market when 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 results of the corresponding
reporting period.

Accordingly, shareholders of the Company are advised that:

   Basic earnings per share (EPS) for the financial year ended 30 June 2019 (FY2019) are likely
    to be between a loss of 119.7 cents per share and 108.3 cents per share, being:
         a decrease of between 463.6 cents per share and 452.2 cents per share when compared
            to the reported EPS of 343.9 cents per share for the financial year ended 30 June 2018
            (FY2018); and
         a decrease of between 509.2 cents per share and 497.8 cents per share when compared
            to the restated EPS of 389.5 cents per share for FY2018, as set out below.
   Basic headline earnings per share (HEPS) for FY2019 are likely to be between a loss of 175.3
    cents per share and 158.6 cents per share, being:
         a decrease of between 516.3 cents per share and 499.6 cents per share when compared
            to the reported HEPS of 341.0 cents per share for FY2018; and
         a decrease of between 561.4 cents per share and 544.7 cents per share when compared
            to the restated HEPS of 386.1 cents per share for FY2018.

Prior period error

We further draw attention to the fact that the FY2018 comparative information has been restated. The
Company and its subsidiaries (the Group) consolidated annual financial statements for the year
ended 30 June 2017 ("FY2017") were selected for review by the JSE as part of its proactive
monitoring of annual financial statements process. Following a referral to the Financial Reporting
Investigation Panel, the JSE concluded that the Groups FY2017 consolidated annual financial
statements contained a prior period error, in relation to the accounting treatment of The ELB
Educational Trust for Black South Africans (the Trust"). In the JSEs opinion, the Trust should have
been consolidated as part of the Group and a non-controlling interest should not have been
recognised for the Trust's shares in ELB Engineering Proprietary Limited, a subsidiary of the
Company. The impact of the prior period error, on each line item affected for FY2018, is disclosed
below:

Balance Sheet                                                      Audited
At 30 June 2018                                                      2018                        2018
                                                                               Adjustment
                                                                 Previously                   Restated
                                                                  reported
                                                                       R000         R000         R000
Assets
Current assets
Cash and cash equivalents                                            334 541           583       335 124
                                                                   2 079 691           583     2 080 274

Total assets                                                      2 426 452           583     2 427 035
Equity and liabilities

Treasury shares                                                    (74 587)         16       (74 571)
Reserves                                                             64 152     11 394         75 546
Retained earnings                                                  681 422      89 643       771 065
Total equity attributable to equity holders of the                 780 165     101 053       881 218
Company
Non-controlling interests                                           98 301    (100 470)       (2 169)
Total equity                                                       878 466          583      879 503

Liabilities

Total equity and liabilities                                      2 426 452        583     2 427 035


Statement of comprehensive income
For the year ended 30 June 2018

Operating costs excluding depreciation and amortisation         (3 530 690)      (972)    (3 531 662)
Operating profit before depreciation and amortisation               183 548      (972)        182 576
Profit from operations                                              163 472      (972)        162 500
Finance income                                                       19 765         22         19 787
Profit before income tax                                            170 927      (950)        169 977
Profit for the year                                                 111 265      (950)        110 315

Other comprehensive income

Items that will not be reclassified to profit or loss
Non-controlling interests in foreign currency translation              113       (200)           (87)
adjustments
Income tax relating to items that may not be reclassified               941         57            998
Total items that will not be reclassified to profit or loss         (2 506)      (143)        (2 649)

Items that may be reclassified to profit or loss
Foreign currency translation reserve adjustments attributable        1 149        200          1 349
to ordinary shareholders of the Company
Income tax relating to items that may be reclassified                (316)        (57)         (373)
Total items that may be reclassified to profit or loss                 833        143            976

Total other comprehensive income for the year                       (1 673)          -        (1 673)

Total comprehensive income for the year                            109 592       (950)       108 642

Profit attributable to:
Ordinary shareholders of the Company                                96 821      12 835       109 656
Non-controlling interests                                           14 444    (13 785)           659
                                                                   111 265       (950)       110 315
Total comprehensive income attributable to:
Ordinary shareholders of the Company                                95 073      12 997       108 070
Non-controlling interests                                           14 519    (13 947)           572
                                                                   109 592       (950)       108 642
Earnings per ordinary share (cents)
Basic earnings per ordinary share                              343.9          45.6       389.5
Diluted earnings per ordinary share                            343.8          45.6       389.4
Basic headline earnings per ordinary share                  341.0        (45.1)       386.1
Diluted headline earnings per ordinary share                340.9        (45.1)       386.0


Statement of cash flows
For the year ended 30 June 2018

Cash flows from operating activities
Cash utilised by operations                                 (22 233)        (972)     (23 205)
Interest received                                             19 765           22       19 787
Distributions to non-controlling interests                     (820)          750          (70)
Net cash outflow from operating activities                  (69 922)        (200)     (70 122)

Decrease in cash and cash equivalents                      (117 410)        (200)    (117 610)
Cash and cash equivalents at the beginning of the year       437 118          783      437 901
Cash and cash equivalents at end of the year                 318 129          583      318 712



The consolidated annual financial results for FY2019 will provide further information on the
restatement, which are expected to be released on or about 18 September 2019.

The financial information on which this trading statement is based and the FY2018 restated
information have not been reviewed or reported on by the Companys external auditors.

Johannesburg
12 September 2019


Sponsor
Questco Corporate Advisory Proprietary Limited

Date: 12/09/2019 05:35:00
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