JSE Sens

EOH HOLDINGS LIMITED - Updated trading statement for the year ended 31 July 2019

11 October 2019 - 17:13 PM
Updated trading statement for the year ended 31 July 2019

(Incorporated in the Republic of South Africa)
(Registration number 1998/014669/06)
JSE share code: EOH ISIN: ZAE000071072
(EOH or the Group)


Shareholders are referred to the trading statement published on SENS on 18 September 2019, in which it was
indicated that EOHs earnings per share (EPS) and headline earnings per share (HEPS) for the Group for
the year ended 31 July 2019 (FY2019) will decrease meaningfully from the audited EPS and HEPS as
previously reported for the year ended 31 July 2018 (FY2018 audited). The EPS loss was anticipated to
be at least 2 700 cents per share and HEPS loss was anticipated to be at least 1 800 cents per share.

EOH is now in a position to indicate that the EPS and HEPS for the FY2019 (before the unaudited restatement
disclosed for the six months ended 31 January 2018) will be as follows:

              Anticipated EPS and               EPS and HEPS for                EPS and HEPS for
              HEPS for FY2019                   HY2019                          FY2018(1)
                                                (as per the unaudited           (as per the audited full
                                                interim results)                year results)
From continuing operations
EPS:           Loss of 2 464 cents per share    Loss of 2 073 cents per share   Profit of 202 cents per share
HEPS:          Loss of 1 352 cents per share    Loss of 973 cents per share     Profit of 278 cents per share
Including discontinued operations
EPS:           Loss of 2 995 cents per share    Loss of 2 099 cents per share   Loss of 70 cents per share
HEPS:          Loss of 1 681 cents per share    Loss of 993 cents per share     Profit of 283 cents per share
(1) Before taking into account the restatement relating to impairments described below and deemed to have
arisen in the prior year of R1,881 million.

The above numbers now include the current potential impact of the findings of the ENSafrica forensic
investigation related to suspicious payments of R1.2 billion, which is substantially complete.
These numbers are materially impacted by:

1. The classification of certain businesses as either continuing or discontinued operations, including assets
   held for sale. As a result of assessing this impact, certain items included in the half year as continuing have
   been reclassified to discontinued.

2. Impairments of goodwill related to difficult economic trading conditions and a change in the focus of the
   Groups strategy. Goodwill impairments constitute the vast majority of the total impairment of non-current
   assets in the current year. Further impairments relate to the overpayment of investments specifically in
   Zimbabwe, the impact of the unwind of the GCT transaction, over-aggressive historic capitalisation of
   intangible assets and uneconomic contracting on complex projects resulting in over- recognition of
   revenue and work in progress. Management assessed the level of impairments to the balance sheet and
   when they most likely arose, resulting in restatements of prior year results.

Whilst management are comfortable with this assessment the auditors do not necessarily agree to the timing
of the impairments and whether they constituted prior year restatements. The Group expects the auditors to
modify their review report to take into account the above disagreement as far as it relates to the comparative
balances in the balance sheet and the resultant impact thereof on the current statement of profit and loss and
retained income balances but expect to have an unmodified conclusion on the closing balance sheet.

The financial information on which this trading statement is based has not been reviewed and reported on by
the Groups external auditors. The reviewed financial results for the FY2019 are expected to be published on
or about 15 October 2019.

11 October 2019

Java Capital

Date: 11/10/2019 05:13:00
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.