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 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.