SENS Announcements

Trading Statement And Restatement Of Prior Year Interim Results

African Equity Empowerment Investments Limited
(Incorporated in the Republic of South Africa)
Registration number 1996/006093/06
Share code: AEE
ISIN: ZAE000195731
("AEEI" or “the Company”)

TRADING STATEMENT AND RESTATEMENT OF PRIOR YEAR INTERIM
RESULTS

TRADING STATEMENT

In terms of para 3.4 (b) of the JSE Listings Requirements,
listed companies are required to publish a trading statement
as soon as the board of directors is satisfied that a
reasonable degree of certainty exists that the financial
results for the period to be reported on next will vary by 20%
or more when compared to those of the prior reporting period.

For purposes of this trading statement it is necessary to
compare the earnings per share and the headline earnings per
share for the six-month period ended 28 February 2018 to the
restated figures for the six-month period ended 28 February
2017 as set out below.

Accordingly, the board of directors is satisfied that a
reasonable degree of certainty exists that the Company expects
that the Group’s basic earnings per share for the six-month
period ended 28 February 2018 will increase and will be
between 1 698.87 cents and 1 717.40 cents per share, compared
to the restated 92.65 cents (as shown below) in the prior
corresponding period. Basic earnings per share were positively
impacted by the gain on the deemed disposal of a subsidiary.

The Company also expects that the Group’s headline earnings
per share for the six-month period ending 28 February 2018
will be between 30.71 cents and 49.33 cents per share,
compared to the restated 92.71 cents in the prior
corresponding period.

The Company further expects that the Group’s normalised
headline earnings per share for the six-month period ended 28
February 2018 will increase and will be between 30.82 cents
and 31.94 cents per share, compared to the restated 5.62 cents
in the prior corresponding period.

Normalised earnings are defined as earnings from continuing
operations excluding non-recurring items and once off
adjustments.

RESTATEMENT OF PRIOR YEAR INTERIM RESULTS

Shareholders are advised that during the finalisation of the
full year results for the year ended 31 August 2017, a
revaluation of the fair value of investments which were
considered materially undervalued was identified and it is
necessary for the interim results for the six-month period
ended 28 February 2017 to be restated accordingly.

The revaluation was required, following an analysis of AEEI's
underlying investments in technology assets, performed by
management in preparation for the AYO Technology Solutions
Limited listing. As part of this assessment, a material fair
value gain would have needed to be recognised in the results
for the six-month period ended 28 February 2017. Accordingly,
the reported earnings per the prior year interim results have
increased by R310m from R138m to R449m due to the reason
stated above.

In addition, the restatement includes non-material
restatements announced in the full year results for the year
ended 31 August 2017.

The below restatement has an effect on the reported earnings
per the statement of profit and loss and other comprehensive
income, statement of financial position and statement of cash
flows as detailed in the table below:

RESTATED INTERIM RESULTS AT 28 FEBRUARY 2017

R’000 As Restated
previously
stated
28 February 2017
Consolidated
Statement of
Financial Position
Investment in 464 767 775 167
associate
Retained income 652 402 962 802
Net asset value per 216.47 279.65
share (cents)

Consolidated Profit
and Loss and Other
Comprehensive Income
Revenue 448 785 454 878
Gross profit 160 873 166 966
Fair value 151 437 551 437
adjustments
Investment revenue 8 212 2 119
Profit before tax 185 382 585 382
Taxation (47 181) (136 781)
Profit from 138 201 448 601
continuing
operations
Total comprehensive 138 201 448 601
income
Basic and diluted 29.48 92.65
earnings per
ordinary share
(cents)
Headline earnings 29.53 92.71
per ordinary share
(cents)
Normalised HEPS (not 5.56 5.62
reported)

Consolidated
statement of cash
flows
Cash generated from 46 126 52 219
operations
Interest revenue 8 212 2 119

The abovementioned financial information on which this trading
statement is based has not been reviewed or reported on by the
Company’s auditors. The interim unaudited financial results
for the six-month period of AEEI is expected to be released on
SENS on or about 22 May 2018.

Cape Town
18 May 2018

Sponsor
PSG Capital

Date: 18/05/2018 10:45:00
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