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SEPHAKU HOLDINGS LIMITED - Trading statement for the unaudited interim group financial results for the six months ended 30 September 2019

08 November 2019 - 07:00 AM
Trading statement for the unaudited interim group financial results for the six months ended 30 September 2019

Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/003306/06)
Share code: SEP
ISIN: ZAE000138459
("SepHold" or the Company)

Trading statement for the unaudited interim group financial results for the six months ended
30 September 2019

In terms of paragraph 3.4(b) of the JSE Limited (JSE) Listings Requirements, companies are required
to publish a trading statement as soon as they are satisfied, with a reasonable degree of certainty, that
the financial results for the period to be reported upon next will differ by at least 20% from those of the
previous corresponding reporting period. SepHold is in the process of finalising its interim results for
the six months ended 30 September 2019, which will be released on SENS on or about 13 November
2019 and published in the press on or about 14 November 2019.

Accordingly, SepHold, Metier Mixed Concrete (Pty) Ltd (Metier or the subsidiary) and Dangote
Cement SA (Pty) Ltd (SepCem or the associate) collectively referred to as the group, advise
shareholders that, results for the six months ended 30 September 2019 compared to the six months
ended 30 September 2018 (H12019) are as follows:

     earnings per share (EPS) of the Company are expected to be between (3.43) and (4.46) cents
      per share (H12019: 12.83 cents per share), and

     headline earnings per share (HEPS) of the Company are expected to be between (3.36) and
      (4.37) cents per share (H12019: 12.59 cents per share).

The continued decline in concrete sales volumes and flat pricing against inflationary cost increases
resulted in a significant decrease in Metiers net profit. The subsidiary is implementing a strategy to
geographically diversify plant footprint to maintain optimal sales volumes and cost management
initiatives to support profitability. Furthermore, SepCems 19% cement sales volume decrease during
the related interim period ended 30 June 2019 resulted in negative equity- accounted earnings for the
Company. Steady recovery in cement sales volumes in the post -period third quarter ended September
2019, has improved SepCems profitability. The group remains cautiously optimistic about the next 6 
12 months following the commencement of several civil construction projects for the national road
network rehabilitation and water storage infrastructure.

The challenging trading environment has had an impact on SepCems mining contractor Diesel Power
Opencast Mining (Pty) Ltd (DPSA) who filed for voluntary liquidation on 18 October 2019 with
immediate seizure of mining activities. SepHold is however pleased to inform shareholders that
SepCem has subsequently appointed a new mining contractor, because at the time of the liquidation
notice the associate was well advanced in its tendering due to the expiration of DPSAs contract in
November 2019.
SepCem has sufficient levels of product stock to cater for any cement demand requirements and has
therefore not been materially impacted by this event. SepHold will provide further details if necessary,
in the next few weeks.

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

Analyst results presentation conference call
A results conference call for analysts will be at 11:00hs (SA time) on 14 November 2019. Registration
is required and can be done using the following link to obtain the dial-in details:

Sephaku Holdings - Interim Results conference call

The results presentation will be available on the company website on 14 November 2019 at 1030hs
through the link : http://sephakuholdings.com/investor-centre/presentations/

8 November 2019

Enquiries contact: Sakhile Ndlovu              Sephaku Holdings            Investor Relations           012 612 0210
Sponsor to Sephaku Holdings: Questco (Pty) Ltd

About Sephaku Holdings Limited

Sephaku Holdings Limited (SepHold) is a building and construction materials company with a portfolio of investments in the
building materials industry in South Africa. The companys core investments are a 36% stake in Dangote Cement South Africa
Proprietary Limited who manufacture the Sephaku Cement brand and 100% in Metier Mixed Concrete Proprietary Ltd. SepHolds
strategy is to generate growth and realise value for shareholders through the production of cement and ready mixed concrete in
Southern Africa. www.sephakuholdings.com

Date: 08/11/2019 08:00:00
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