Further to the trading statement released by the Company on the Stock Exchange News Service of the JSE Limited on 8 March 2018 (“Trading Statement”), Famous Brands is satisfied that it now has the reasonable degree of certainty required to provide further guidance with regard to the financial results of the Group for the twelve months ended 28 February 2018 (“the review period”).
The Group’s SA business (comprising its Brands, Logistics and Manufacturing divisions) will report an improvement in Profit Before Interest and Tax (“PBIT”) compared to the prior comparable period.
In the Trading Statement, shareholders were advised that in the context of the prevailing adverse macro-economic environment in the UK, impairments and a provision for property related expenses would be recognised related to the Group’s investment in the UK business, GBK Restaurants Limited (“GBK”).
GBK recorded an Operating loss of GBP7.8 million for the review period. The board of directors (“the Board”) remains confident that the interventions being implemented in the business will ensure that GBK returns to profitability in the medium term.RESULTS
As cautioned in the Trading Statement, the Group’s consolidated results for the twelve months under review are weaker than those reported in the prior comparable period, negatively affected by:
an impairment of intangible assets at Group level of ZAR304 million;
an impairment of property, plant and equipment of GBP4.2 million (ZAR69 million) at GBK; and
a provision for property related expenses of GBP2.0 million (ZAR33 million) at GBK.
For the twelve months ended 28 February 2018, headline earnings per share (“HEPS”) compared to the prior comparable period are expected to be within the range of 327 cents to 405 cents per share (2017: 428 cents per share), being an approximate decrease of 5% to 24%.
For the twelve months ended 28 February 2018, basic earnings per share (“EPS”) compared to the prior comparable period are expected to decrease to within the range of 18 cents per share to 23 cents per share (2017: 414 cents per share), being an approximate decrease of 94% to 96%.
The annual results of the Company for the year ended 28 February 2018 will be released on 24 May 2018.
A live webcast was held at 11:30 (SAST) on 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.
17 May 2018