25 Aug - 3 min read

Initial Trading Statement

Initial Trading Statement

TELEMASTERS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 2006/015734/06
Share code: TLM & ISIN Number: ZAE000093324
(“TeleMasters” or “the Company” or “the Group”)


INITIAL TRADING STATEMENT


In terms of paragraph 3.4(b)(i) of the Listings Requirements of the JSE Limited, listed companies
are required to publish a trading statement as soon as they become reasonably certain that
the financial results for the period to be reported on next will differ by at least 20% from those
of the previous corresponding period or from a profit forecast previously provided to the market
in relation to such period.

Shareholders are advised that, for the year ended 30 June 2021, the Company expects to
report a loss per share (“LPS”) and a headline loss per share (“HLPS”) that reflect a decrease of
at least 350% compared to the earnings per share of 2.59 cps and the headline earnings per
share of 2.49 cps reported for the year ended 30 June 2020.

The decrease is attributable, inter alia, to:

(a)     a once-off provision for the failure to collect revenues arising from a breach of contract
        by one customer in relation to one specific contract concluded with Catalytic
        Connections (Pty) Limited (“Catalytic Connections”), a wholly-owned Company
        subsidiary. Catalytic Connections has initiated legal proceedings in the North Gauteng
        High Court (Pretoria) to collect said revenues which proceedings comprise of an
        application to liquidate the customer and concurrently realise a personal suretyship
        signed by the CEO of the customer. While the outcome and timing of the outcome of
        such legal proceedings remain uncertain, Catalytic Connections would not have
        launched such legal proceedings without being confident of its position and ability to
        collect some or all of such revenues in due course;

(b)     following its acquisition of the remaining 75% shareholding in Conexlink (Pty) Limited,
        the Company’s continued investment in the infrastructure and operations of its wholly-
        owned Ultra DC data centre subsidiary resulting in higher depreciation; and

(c)     a reduction in revenues earned from lower variable usage services incurred by some
        customers arising as a result of the various lockdown regulations imposed by the
        Government of South Africa in response to the COVID-19 pandemic.

A further trading statement will be issued when there is a reasonable degree of certainty as to
the range of the LPS and HLPS which will be ultimately realised by the Company.

The financial information on which this trading statement is based has not been reviewed and
reported on by the Company’s auditors. It is anticipated that the financial results for the year
ended 30 June 2021 will be published on or about 30 September 2021.

Waterfall City
25 August 2021

Designated Advisor
AcaciaCap Advisors Proprietary Limited

Date: 25-08-2021 08:30:00
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