9 November 2020 14:00
Trading Statement

(Incorporated in the Republic of South Africa)
(Registration number 1998/000828/06)
Share Code: SUR & ISIN: ZAE000022653


In terms of the Listings Requirements of the JSE Limited,
companies are required to publish a trading statement as soon
as a reasonable degree of certainty exists that the financial
results for the period to be reported upon next will differ
by at least 20% from the financial results for the previous
corresponding period.

Shareholders are referred to the sales update announcement
dated 23 July 2020 in which the group advised that it
anticipated that earnings per share (“EPS”) and headline
earnings per share (“HEPS”) for the year to 30 June 2020
(“current year”) were likely to decline by at least 40%
relative to the prior year.

Shareholders are now advised that the group is expecting to
report EPS and HEPS in the following ranges for the current

                             2020        2019       % change
EPS (cents)         71.21 – 79.90      173.69    -59% – -54%
Diluted EPS         71.02 – 79.68      173.22    -59% – -54%
HEPS (cents)        78.16 – 86.84      173.68    -55% – -50%
Diluted HEPS        77.94 – 86.61      173.21    -55% – -50%

Major factors impacting on expected earnings

The effects of the COVID-19 pandemic have had a material
impact on the group’s trading performance since March 2020,
as previously communicated to shareholders in the SENS
announcements dated 13 May 2020, 23 July 2020 and 8 October
2020. The SENS announcement dated 8 October 2020 detailed
the recovery in the group’s trading performance subsequent to
year end up to September 2020.

The group previously reported that at 30 June 2019 it had
provided for expected credit losses relating to a receivable
from the group’s former black economic empowerment partner,
Grand Parade Investments Limited, in the amount of R10.812
million. Of this amount, R6.688 million was recognised as a
charge to profit or loss during the prior year. Following
the recovery of the receivable during the current year, the
full provision for expected credit losses of R10.812 million
has been reversed as a credit to profit or loss in the current

The financial plight of franchisees in response to the
pandemic has resulted in greater credit risk, requiring
additional allowances for expected credit losses.

The longer-term impact of the pandemic on the economy and the
effects of a protracted recovery have resulted in certain
impairments of goodwill, intangible assets, tax receivables
and property, plant and equipment in the current year.

The financial information on which this trading statement is
based has not been reviewed or reported on by the group’s
independent auditor.   The group’s audited results for the
year ended 30 June 2020 are expected to be published on 20
November 2020.

Cape Town
9 November 2020

A member of the Sasfin Group

Date: 09-11-2020 02:00:00
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