BELL EQUIPMENT LIMITED - Trading statement and restatement of prior year results

Trading statement and restatement of prior year results

BELL EQUIPMENT LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1968/013656/06
ISIN: ZAE000028304
Share Code: BEL
(“the Company”)


TRADING STATEMENT AND RESTATEMENT OF PRIOR YEAR RESULTS


Shareholders are referred to the trading statement released on
SENS on 4 December 2020 wherein it was reported that the Company
expected to report an earnings loss per share and a headline loss
per share of at least 10 cents, a reduction of 89 cents per share
or 113% and of 90 cents per share or 113% respectively, for the
year ended 31 December 2020 when compared to the earnings per share
and headline earnings per share of 79 cents and 80 cents
respectively for the year ended 31 December 2019.

Shareholders are advised that the Company’s earnings loss per share
and headline loss per share for the year ended 31 December 2020
are now expected to be between 60 cents and 70 cents per share (or
between 130 cents and 140 cents lower) and between 25 cents and 35
cents per share (or between 96 cents and 106 cents lower)
respectively, compared with the restated earnings per share and
restated headline earnings per share of 70 cents and 71 cents
respectively for the year ended 31 December 2019.

The expected decrease in earnings for the year ended 31 December
2020 compared to the SENS on 4 December 2020 is mainly due to the
recognition of an impairment loss on the revaluation of a property
owned by the group in Zambia and an increase in the refund
liability relating to residual guarantees provided to a financial
institution to support the financing of equipment sales to
customers.

Shareholders are also advised that the group’s results contain a
prior year adjustment and that the comparative balances therefore
differ from those previously reported. The prior year restatement
which resulted in a reduction in profit after tax for the year
ended 31 December 2019 of R8,7 million, related to the correction
of errors in the provision for standard warranty costs.

Below is the impact of the prior year adjustment on the comparative
numbers for the year ended 31 December 2019:




2857/02/2012
                               2019          2019
                              Result     Restated
                                           Result      % Change
                              R’000         R’000

Cost of sales            (6 363 309)   (6 375 387)      0,2
Gross profit              1 459 860     1 447 782      (0,8)
Profit before taxation      118 602       106 524     (10,2)
Taxation                    (57 647)      (54 261)     (5,9)
Profit for the year          60 955        52 263     (14,3)

                              Cents         Cents
Basic earnings per share         79            70     (11,4)
Diluted earnings per share       79            70     (11,4)
Headline earnings per share      80            71     (11,3)

Further details will be in the results announcement on SENS.

The financial information on which this trading statement is based
has not been reviewed and reported on by the Company’s external
auditors.

Richards Bay
13 April 2021
Sponsor: INVESTEC BANK LIMITED




2857/02/2012

Date: 13-04-2021 04:32:00
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