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SUPER GROUP LIMITED - Voluntary Trading Statement

Release Date: 03/02/2021 07:39
Code(s): SPG SPG009 SPG008 SPG010 SPGC02 SPG005 SPG006 SPG007 SPG004     PDF:  
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Voluntary Trading Statement

Super Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1943/016107/06)
Share code: SPG
ISIN: ZAE000161832
LEI: 378900A8FDADE26AD654
Debt Company Code: BISGL
(“Super Group” or “the Group”)

VOLUNTARY TRADING STATEMENT

Considering that the South African economy was already constrained pre Covid-19, the Group has
delivered a commendable trading performance for the six months to December 2020. The Group’s
financial position is robust and cash flow has been resilient in these challenging circumstances.

This outstanding performance has been achieved despite the negative impact of lockdowns, including
the continuing South African Alert Level 3 regulations. The Australian, German and United Kingdom
(UK) businesses have also been impacted by lockdown restrictions with the most significant impact
being experienced in the UK. The UK dealerships were negatively impacted by the lockdown from 5
November 2020, which was reimplemented on 4 January 2021 until at least March 2021.

Trading results for the six months to 31 December 2020

Revenue from operations of R20 billion is 5.8% above the prior comparable period, reflecting strong
sales performances in the Supply Chain Europe and Dealerships UK in particular. The Dealerships
UK performance reflects good sales demand over the four month period to 5 November 2020.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) for the six months to
December 2020 of R2.2 billion is 6.2% above the prior comparable period.

Emphasis remains strongly focused on effective cash generation and management of working capital.
Cash generated from operations was excellent, with an operating cash flow of approximately R2.2
billion before an inflow of working capital. The Group has caught up with all capital projects that were
delayed as a result of the Level 5 and 4 lockdowns in South Africa which extended from March 2020
to the end of May 2020. The Group’s financial position is robust and net debt to equity (gearing),
excluding IFRS 16, was approximately 21.5 % as at December 2020 (June 2020: 24.1%).

The focus for the next six months will remain on minimising the impact of the restrictions imposed due
to Covid-19, the retention of existing contracts and the optimisation of new business solutions across
a number of new customers in the Supply Chain and Fleet operations in particular.

Prospects

Super Group recognised that the Covid-19 pandemic and related lockdowns will result in long-term
social-economic shifts and structural changes to the economy and business in general. The Group
has strategically reviewed all businesses and right-sized operations to make sure that business
models are relevant and appropriate to current levels of demand. The benefit of these initiatives has
manifest strongly in both the Supply Chain Europe and South African operations as well as
Dealerships SA.

In the short-term, management is intent on operational delivery in a flexible and cost-efficient manner,
and within the parameters set by Governments. Specifically, the Group has in place a comprehensive
suite of safety, health and hygiene protocols for the protection of all stakeholders including in
particular staff and customers.

Voluntary Trading Statement

Super Group’s financial results for the six months to 31 December 2020 have been and continue to
be impacted by Covid-19, weak macroeconomic conditions and business rationalisation in both
Europe and South Africa. Nevertheless, the Group delivered a strong trading result for the period
concerned.

Super Group expects the following unaudited interim financial results for the six months ended 31
December 2020:

                               Projected range         Actual                 % Range
                               31 December             31 December
                               2020                    2019

Profit before tax              R980 million to        R892.7 million          9.8%  to 14.3%
                               R1.020 billion
Earnings per share             158 cents to 162 cents 142.0 cents             11.3% to 14.1%
Headline earnings per share    158 cents to 162 cents 152.5 cents             3.6%  to 6.2%

The interim results for the six months to 31 December 2020 are scheduled for release on 22 February
2021.

Shareholders and noteholders are advised that the financial information on which this voluntary
trading statement is based has not been reviewed and reported on by Super Group’s external auditor.

Sandton                                          Registered office
3 February 2021                                  27 Impala Road, Chislehurston, Sandton, 2196

Equity Sponsor
Investec Bank Limited

Debt Sponsor
Rand Merchant Bank (a division of First Rand Bank Limited)

Date: 03-02-2021 07:39:00
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