The Group previously announced on 2 December 2019 that it would change its financial year-end from August to December, effective for the period ending 31 December 2019. This trading statement therefore relates to a four month trading period ended 31 December 2019, with the comparative period, being the 12-month trading period ended 31 August 2019. As the result of the 12-month comparative period, this trading statement does not provide a meaningful comparison of the company’s performance during the four-month period ended 31 December 2019. The results for the 12-months to 31 August 2019 were released on SENS on 2 December 2019.
Shareholders are advised that for the four-month period ended 31 December 2019, the Group expects to report a:
- Loss per share (“LPS”) of between 50 cents per share and 105 cents per share, being an improvement of between 73.6% and 87.4% compared to the 12 months ended 31 August 2019 (“the prior comparable reporting period”) of 398 cents loss per share and;
- Headline loss per share (“HLPS”) of between 52 cents per share and 107 cents per share, being an improvement of between 70.8% and 85.8% compared to the prior comparable reporting period of 366 cents loss per share.
CIG continued to trade in extremely difficult macro-economic conditions, with pressure on all businesses. The Group initiated interventions to respond to these conditions resulting in most businesses trading in line with expectations.
The Group’s most challenging business remains Consolidated Power Projects (Pty) Ltd. (“Conco”). The positive impact of focused management and operational execution oversight has started to materialise but failed to negate the costs associated with an overhead structure that is oversized relative to the level of current market activity. The results were further impacted by material finance charges on interest bearing borrowings.
Conlog (Pty) Ltd. was impacted by higher than budgeted operating costs, including once-off costs following the relocation of the office and manufacturing operation in November 2019.
Update on debt restructure
The Group announced that the Company and Conco are finalising binding legal agreements, which will be subject to normal conditions precedent.
The Group expects to release its audited consolidated results for the four months ended 31 December 2019 and its integrated annual report to the market on or before 28 February 2020.
The information on which this trading statement has been based has not been reviewed or reported on by the company’s external auditors.