In terms of paragraph 3.4(b) of the JSE Limited (“JSE”) Listings Requirements, companies are required to publish a trading statement as soon as they have reasonable certainty that the financial results for the next period to be reported upon will differ by at least 20% from those of the previous corresponding period.
Shareholders are advised that a decision has been taken by the board of directors of Famous Brands (“the Board”) to recognise the following amounts in relation to the Company’s investment in GBK Restaurants Limited (“GBK”), a wholly owned subsidiary incorporated in the United Kingdom:
i. an impairment of intangible assets at Group level, which is estimated to be between ZAR241 million and ZAR322 million;
ii. an impairment of property, plant and equipment at GBK, which is estimated to be between GBP3.6 million and GBP4.8 million (the rand equivalent being between ZAR59 million and ZAR78 million); and
iii .a provision for property related expenses at GBK, which is estimated to be between GBP2.3 million and GBP3.0 million (the rand equivalent being between ZAR37 million and ZAR49 million).
The exact valuations of the two impairment figures and the provision will be determined as part of the year-end process.
Accordingly, in terms of the annual results of the Company for the twelve months ended 28 February 2018, the Board has reasonable certainty that the impairments and expenses will result in a decrease of greater than 20% on the Company’s earnings per share (EPS) compared to the previous corresponding period.
As the results for the year ended 28 February 2018 are in the process of finalisation, the Company does not have the required certainty to be able to provide the ranges of the EPS decreases. A further announcement will be released as soon as reasonable certainty in this regard has been obtained.
The annual results of the Company for year ended 28 February 2018 will be released on or about 24 May 2018.
The financial information on which this trading statement is based has not been reviewed or reported on by the Company’s external auditors.