TRUWORTHS INTERNATIONAL LIMITED - Updated trading statement & update on the publication date of the results for the 52-week period ended 28 June 2020

Updated trading statement & update on the publication date of the results for the 52-week period ended 28 June 2020

Truworths International Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1944/017491/06)
JSE Code: TRU
NSX Code: TRW
ISIN: ZAE000028296

UPDATED TRADING STATEMENT AND UPDATE ON THE PUBLICATION DATE OF THE
FINANCIAL RESULTS FOR THE 52-WEEK PERIOD ENDED 28 JUNE 2020

Investors are referred to the trading statement and the trading update published on SENS
by Truworths International Limited (the ‘Group’) on 25 May 2020 and 15 July 2020,
respectively.

As announced, the COVID-19 pandemic has materially affected the Group’s Truworths
business in South Africa and its Office business in the United Kingdom. The consequential
impact of the difficult trading environment on the profitability and liquidity of Office has
necessitated a re-assessment by management of the carrying value of the Office segment’s
trademarks and right-of-use assets relating to store leases. This has resulted in non-cash
impairment charges amounting to £118 million (R2.5 billion, based on the period-end
exchange rate) and £13 million (R283 million, based on the period-end exchange rate)
being raised against the Office trademarks and right-of-use assets, respectively.

The Group’s headline earnings per share (‘HEPS’) (which exclude the impairment of the
Office assets by definition) and earnings per share (‘EPS’) for the period are estimated to
decrease as follows:

                                                                                  Estimated
                                     52 weeks to        52 weeks to             decrease on
                                    28 June 2020       30 June 2019*           prior period
                                         (cents)            (cents)                     (%)
HEPS                                  388 to 417                580            -28% to -33%
EPS                                 -127 to -142                145          -188% to -198%

* As restated (on adoption of IFRS 16: Leases) in the interim results for the period ended
29 December 2019.

The 2020 year-end financial reporting process has been challenging as the Group has had to
manage the impact of COVID-19 on the auditing processes. There have also been a number
of significant accounting issues to contend with, including the business consequences of
COVID-19, the first time adoption of IFRS 16 and the impairment of the Office assets. The
Group’s final audited results for the 52-week period ended 28 June 2020 will be announced
simultaneously with the publication of the audited annual financial statements on or about 3
September 2020.

Shareholders are advised that this trading statement does not constitute an earnings
forecast, and that the financial information provided herein is the responsibility of the
directors and has not been reviewed or reported on by the Group's external auditor, Ernst &
Young Inc.

19 August 2020
Cape Town

Sponsor in South Africa
One Capital

Sponsor in Namibia
Merchantec Capital




                                                                           

Date: 19-08-2020 08:11:00
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