2017-04-21 16:30:00

VLE 201704210041A
Trading Update

Value Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1997/002203/06
Share code: VLE
ISIN code: ZAE000016507
(Value or the Group)


In terms of the listings requirements of the JSE Limited, a listed company is required to
publish a trading update as soon as it becomes reasonably certain that the financial results
for the period to be reported on next will show a 20% or more difference from the previous
corresponding period.

Trading conditions in the logistics environment are extremely challenging. Poor growth
rates, in addition to the termination of non profitable business, have reduced the Group’s
volume base. Certain competitors continue to discount rates to non sustainable levels.
Consequently a major restructuring exercise within the Logistics, truck rental, warehouses
and Freightpak breakbulk operations was undertaken with the objective of reducing
operating and overhead costs. In addition, rates were carefully evaluated and adjusted
where required. The positive effect of this restructuring was successfully rolled out across
the Group with the specific objective of reducing the cost base. Although volumes and
activity increased in the second half compared to the first half, the reduced cost base
contributed to an improvement in the Group’s results. In addition, the acquisition of Key
Distributors (Pty) Ltd, effective 1 March 2016, has performed positively. Considering
margins are low, the business has outperformed expectations and continues to expand into
new markets.

Shareholders are accordingly advised that basic and headline earnings per share for the
year ended 28 February 2017 will be 55% to 75% higher than that achieved in the previous
corresponding period. This translates to basic earnings per share ranging from 54,9 to 62,0
cents per share in relation to the comparative period (35,4 cents per share) and headline
earnings per share ranging from 57,7 to 65,1 cents per share in relation to the comparative
period (37,2 cents per share).

The financial results, on which this trading update has been based, have not been reviewed
nor reported on by Value’s auditors. Further information will be provided in the results
announcement for the year ended 28 February 2017 which will be published on or about
11 May 2017.

21 April 2017

Investec Bank Limited

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